The document discusses the concept of infrastructure, dividing it into social and physical types, and outlines how investments in both can lead to economic development by enhancing productivity and growth. It highlights the positive correlation between infrastructure investment and economic output, using examples such as China's significant investments in infrastructure compared to other nations. The impact of public transport includes job creation, reduced congestion, and increased business productivity, which collectively enhance national competitiveness.

1. INFRASTRUCTURE AND
DEVELOPMENT
CASE STUDY – PUBLIC
TRANSPORT
SNEHA KHANNA
B.A.(HONS) ECONOMICS
830

2. WHAT IS
INFRASTRUCTURE?
• Infrastructure is a heterogeneous
term, including physical structure of
various types used by many industries
as input to production of many goods
and services.

3. TYPES OF
INFRASTRUCTURE
• TYPES OF INFRASTRUCTURE
• SOCIAL INFRASTRUCTURE – Schools
& Hospitals
• PHYSICAL INFRASTRUCTURE –
Network Utilities

4. HOW DO INVESTMENT IN
PHYSICAL
INFRASTRUCTURE LEADS
TO DEVELOPMENT
• Infrastructure effect output in two main
ways :
• Directly - considering the sector
contribution to GDP formation and as an
additional input in the production process
of other sectors .
• Indirectly - raising total factor
productivity by reducing transaction and
other costs thus allowing a more efficient
use of conventional productive inputs.

5. How do Investment in
Social Infrastructure
leads to Development?
• Education is a very important source
of economic growth
• Even though education may be a social
investment, it is also an economic
investment since it enhances the stock
of human capital.
• Health, like education, is a very
important argument in the socio-
economic production function.

6. RELATIONSHIP BETWEEN
INVESTMENT IN
INFRASTRUCTURE AND
GROWTH
• a majority of studies report shows a
significant positive effect of
infrastructure on output, productivity,
or long-term growth rates.
Infrastructure investment is
complementary to other investment in
the sense that insufficient

7. infrastructure investment
constrains other investment,
while excessive infrastructure
investment has no added value. To
the extent that suboptimal
infrastructure investment
constrains other investment, it
constrains growth

8. Examples of Infrastructure
based Development
China invested roughly 9% of its GDP
in infrastructure in the 1990s and
2000s, most Western and non-Asian
emerging economies invested only 2%
to 4% of their GDP in infrastructure
assets.
Fixing "America’s crumbling
infrastructure" is a "pillar" of President
Donald Trump's "Make America Great
Again" plan.

10. IMPACT OF PUBLIC
TRANSPORT

12. • Increase in number of Jobs.
• reduced traffic congestion for those traveling
by automobile and truck, leading to further
direct travel cost savings for businesses and
households
• business productivity gained from access to
broader labor markets with more diverse
skills, enabled by reduced traffic congestion
and expanded transit service areas; and •
additional regional business
• At a national level, cost savings and other
productivity impacts can affect
competitiveness in international markets.

13. REFERANCES
• LSE GROWTH COMISSION –
INFRASTRUCTURE AND GROWTH BY
Novella Bottini, Miguel Coelho, and
Jennifer Kao
• http://www.lse.ac.uk/researchAndExpertise/units/growthCom
mission/documents/pdf/SecretariatPapers/Infrastructure.pdf
• INFRASTRUCTURE BASED
DEVELOPMENT
• https://en.wikipedia.org/wiki/Infrastructure-
based_development

14. • How does investment in infrastructure
leads to economic growth?
• https://www.quora.com/How-does-infrastructure-spending-
stimulate-economic-growth-and-why-is-China%E2%80%99s-
investment-in-infrastructure-projects-considered-ill-
considered-or-bad

15. •
THANK YOU !!