Name: THE ROLE OF INFRASTRUCTURE DEVELOPMENT ON NATIONAL ECONOMIC GROWTH: A CASE STUDY OF THE TELECOMMUNICATION SECTOR IN NIGERIA (2000-1-2010-4) Type: PDF and MS Word (DOC) Size: [651 KB] Length: [50] Pages . THE ROLE OF TELECOMMUNICATIONS INFRASTRUCTURE IN THE REGIONAL ECONOMIC GROWTH OF AFRICA Michael Enowbi Batuo University of Westminster, UK ABSTRACT This paper presents empirical evidence on how telecommunications infrastructure is related to economic growth in a panel dataset covering 44 African countries for the period from 1990 to 2010. In some circumstances transport investments appear to be a catalyst for economic growth while in others, economic growth puts pressures on existing transport infrastructures and incite additional investments. Features of Infrastructure 3. Infrastructure’s condition has a cascading impact on our nation’s economy, impacting business productivity, gross domestic product (GDP), employment, personal income, and international … The development of National Highways is the responsibility of the Central Government which has been mandated to upgrade and strengthen a total of 54,478 km of NHs, through various phases of the National Highways Development Project (NHDP). It will be seen from the table that per capita energy use in 2009 in USA was 7503 kilograms of oil equivalent while in India it was only 545, that is, energy use per capita in the USA is 15 times higher as compared to India. <> Where the growth of … Maintaining, expanding, and modernizing our infrastructure is vital to ensuring strong economic growth. That is, the greater the energy used per capita of a country, the higher the per capita income and productivity levels of a country. Investment in infrastructure is part of the capital accumulation required for economic development and may affect socioeconomic measures of welfare. endobj In contrast, traffic at non-major ports increased at around 9.6 per cent during 2013-14 as compared to 9.8 per cent in 2012-13. The United States and other developed countries use or consume much higher energy per capita as compared to the developing countries such as India. Telecommunications in India have seen impressive expansion and large investment in the past several years with a tele-intensity increasing from 26.2 per cent in 2008 to 78.7 per cent in 2012. It needs to be emphasized that good quality infrastructure is important not only for faster economic growth but also to ensure inclusive growth. Out of 35 metro airports work has been completed in 33 metros and in the remaining two airports of Vadodra and Khajuraho work is in progress. For example, you cannot import power facility, roads, ports or railways as they have to be built up in the domestic economy. The role of infrastructure in economic growth and income inequality in Indonesia Gunawan Prayitno Universitas Brawijaya, Malang, Indonesia. Railways are an important infrastructure as a means of transport whose expansion and efficient working is required for rapid growth of the economy. Generally, infrastructure plays a critical role in expanding national production capacity, which leads to increase in a country's wealth. The role of infrastructure in economic growth is critical to the nation’s prosperity and the public’s health and welfare. A model was specified for the purpose and secondary quarterly data was collected for the period 2000-2010. Because location-based the need for relevant infrastructure facility can be met through development of its capacity in the domestic economy. These have now been resolved and it is expected that in the next five years there will be significant progress in this area. Infrastructure discussions tend to lead to discussions on public goods. Thus, even though the domestic production of energy in India is projected to increase significantly, dependence on imports will continue to remain high, particularly for crude oil where nearly 78 per cent of the demand will have to be met through imports by the end of the 12th Plan (i.e. %PDF-1.5 Moreover, economic growth can be stimulated by making an investment in the major determinants of economic growth i.e. Effective and efficient transportation provide economic benefits that result in multiplier effects such as better accessibility to markets, employment and additional investments. Examples are Korea and Japan. The availability of transport expands the market for agricultural and industrial products and thereby enables the producers to produce on a large scale and reap the benefits of the economies of scale. Furthermore, the construction of roads and upgradation of national highways (NHs) in the districts affected by Left-Wing extremism in Andhra Pradesh, Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha and Uttar Pradesh have been taken up for inclusive growth of these areas. There are some difficulties in the way of developing national highways due to acquisition of land from the owners from which national highways have to pass through. Roads, water systems, mass transportation, airports and utilities are all examples of infrastructure. Alterations to the standard investment feedback cycle, allowing for hybridisation of current theories, are identified. Telecommunications and the associated increase in Internet connectivity is a productivity enhancing development and India is well based to benefit from this. For example, building of rural roads will benefit agriculture as the farmers are able to sell their products in towns where they can get remunerative prices. Uncertainties about fuel availability would seriously dampen investment activity in this sector, especially since about half of the generating capacity is expected to come from the private sector and they will not be able to obtain the required finance if fuel supply issues are not resolved. India has one of the largest road networks in the world spread over around 49 lakh kilometers. The study examines the role of infrastructure development in national economic growth. Masito Erlando Situmorang BPS Puncak Jaya Regency, Papua Province, Indonesia. Better transport means greater access to public resources including schools, hospitals and other health facilities”. Infrastructure plays a key role in facilitating trade, especially since recent trade liberalization in Asia has resulted in significant tariff reductions. It covers those supporting services that help the growth of directly productive activities like agriculture and industry. They link production, distribution centres and the end consumers as well. After over 50 years of independence, in India the adequate pucca rural roads had not been built and natural highways were in very bad shape and not properly built and maintained lack of good ports and ports in India affected foreign trade of the country. Without efficient ports it is not possible to expand foreign trade. Nearly two-thirds of African farmers are cut off from national and world markets, because of poor infrastructure and market access. There is a very large scope for further expansion in the telecommunications, especially with the introduction of 3G and 4G services. This study quantifies the impacts of both hard and soft infrastructure on trade volume for exporters and importers in the region as well as on various economic growth indicators. In the last few years there has been some progress in the development of national highways and in rural roads but much more needs to the done. It follows from above that the expansion of infrastructure facilities will ensure sustained growth of employment in agriculture and small-scale rural industries and bring prosperity in the rural areas and in this way ensure inclusive growth. The companies like Amazon, Flipkart, Snapdeal are engaged in E-commerce for sale of goods. However, due to arbitrariness and irregularities in the allocation of 2G Spectrum in 2008, 2G licenses and associated spectrum were cancelled by the Supreme Court in 2011 and ordered for reallocation of the spectrum through auction. To expand airport infrastructure in India, modernisation of airport infrastructure in metro and non-metro cities and construction of Greenfield airports are under consideration of the government. In fact, the data in the table shows that there is a very high degree of positive correlation between per capita energy use and per capita income of a country. Besides, for achieving rapid economic growth on sustainable basis, there is need for rise in productivity. Consumption of energy by the various countries of the world varies significantly. Infrastructure is basically the base in which economic growth is built upon. As regards minor ports which come under State governments, there has been good progress in the Eleventh Plan period. In case of India, according to the Twelfth Plan projections, total energy production will reach around 670 million tonnes of oil equivalent (MTOE) by 2016-17 and 844 MTOE by 2021-22. The relationship between transportation and economic development is difficult to formally establish and has been debated for many years. Conversely, economic growth also leads to an increase in profits and earnings and this stimulates public and private investment activity. The causality of infrastructure and economic growth has always been in debate. Modern economies rely on infrastructure. Throughout history, major milestones in transportation technology have stimulated economic progress and extensively improved the quality of the life of the people. This paper empirically investigates the role of telecommunication infrastructure on long run regional economic growth in China for a sample of 29 regions for a 17 years' period, from 1986-2002. Economic infrastructure is the nerve centre of the economic system. As a result, its capable labor force is not being fully utilized to spur economic growth. For example, the distribution of electricity which is an infrastructural service is being provided by two power Companies of Tata and Reliance in different regions of Delhi, the electricity rates and other charges are being regulated by an authority appointed by the government. Disclaimer Copyright, Share Your Knowledge Issues requiring attention include the policy for better spectrum management, strengthening a national fibre-optic network, network mobile number possibility and rural telephony. It comprises national highways, expressways, state highways, district roads with length details given in Table 35.2. Education as well as telecommunication is a very important source of economic growth. Besides, many BPO companies are providing outsourcing services through telecommunication. A total length of around 22,000 km has been completed till March 2014. It is worthwhile to note that the potential for energy generation depends upon a country’s natural resource endowments and the technology used to harness them. According to World Bank estimates, in the year 2008 developing countries made investment of around $ 500 billion a year in new infrastructure—transport, power, water, sanitation, telecommunication, irrigation and so on equal to 20 per cent of GDP but the need for infrastructure investment is still large. Recent literature debate on the linkage between infrastructure and economic growth was sparkled by empirical studies on the role of infrastructure in the United States. Moreover, investments in infrastructure work as a force multiplier wherein the monies invested in building highways and ports and airports not only creates the “hardware” for a nation’s development but also results in more growth because the huge amounts of money are spent on construction materials, wages, and production of other raw materials which help those industries to grow faster. However in the last 12 years, regarding telephone service things have improved a lot in India, especially with the widespread use of mobile telephone service. Thus the inclusive growth will lead to the alleviation of poverty and reduction in income inequality in the country. TOS4. In India a large number of companies providing telecom services have come into being. Likewise, in India, the performance of railways port and airport services has been quite inefficient and poor and need drastic reforms to be undertaken to improve their services. The demands of a growing economy such as ours require railways to expand its freight network, increase its ability to carry larger weight per wagon and the efficiency of the rail system for faster delivery. Despite having a relatively well-educated, healthy, and dense rural population, Sri Lanka's economy relies not on agricultural output but on services and manufacturing. ORCID 0000-0003-4534-9524. The expansion of telecommunications in India has been led by private sector whose market share (in terms of number of connections) increased from 73.5 per cent in 2008 to 86.3 per cent in 2012. railway network) on economic growth and to examine the direction of causality between economic growth and infrastructure using historical data covering the period of 1980 to 2016 and cointegration analysis. Ports are another important infrastructure for international trade connectivity. 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