The main objectives of the study were to examine the effect of infrastructure (i.e. 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. 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. 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. DO NOT copy word for word. Besides, for achieving rapid economic growth on sustainable basis, there is need for rise in productivity. The objective of this research was primarily to investigate the level of telecom infrastructure development on the Nigeria economy. 114/ The Role of Infrastructure in Promoting Economic Growth in Iran spending, Easterly and Rebelo (1993) find that public expenditure on transport and communications significantly raises growth. Examples are Korea and Japan. It is therefore urgently needed that infrastructure projects be given environment clearance quickly and investment in them be speeded up if the Indian economy is to be brought back on the fast growth trajectory. In other words, it is the challenge to ensure strong, sustainable and balanced development through integration of the economy with environmentally sustainable development of infrastructure. This chapter describes the development of infrastructure and their contribution towards economic growth and development. 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. It also helps to diversify production by the firms as they are able to get the required supplies of raw materials and other inputs from the places where these are available in abundance. Besides, transport development helps to open up more regions and resources for production. Trade and commerce could not exist on a modern scale without efficient transportation, communication, energy, water, and waste disposal systems. A distinguishing feature of infrastructure is that while the demand-supply gap in case of other factors can be met by importing some of them, the deficiency of infrastructure cannot be made up through imports. 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. Welcome to EconomicsDiscussion.net! Investment in infrastructure is part of the capital accumulation required for economic development and may affect socioeconomic measures of welfare. Communication, especially telecommunication; 6. It is worthwhile to mention some distinctive features of infrastructure – First, the building of infrastructure requires large and lumpy investment and they contribute to output, after a long time that is their gestation period is quite long. It is a public utility service which gives place and time utility to goods and services. Rosenstein-Rodan (1943), Nurkse (1952), and Hirschman (1957)argue for a positive role, viewing substantial infrastructure investment as necessary before other types of … 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. By inclusive growth we mean that benefits of growth are shared by the majority of the people of a country. The United States and other developed countries use or consume much higher energy per capita as compared to the developing countries such as India. Besides, in many of infrastructural facilities, there are significant economies of scale and therefore they have the features natural monopoly. It needs to be emphasized that good quality infrastructure is important not only for faster economic growth but also to ensure inclusive growth. This paper investigates the role of infrastructure capital in China’s regional economic development during 1990 to 2009 in a neoclassical economic growth model. 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. Content Guidelines 2. The results support a positive role of infrastructure in improving economic wellbeing in China. Economic infrastructure is the nerve centre of the economic system. Moreover, it will impact directly on the poor, thus reducing poverty. The infrastructure is important for faster economic growth and alleviation of poverty in the country. Infrastructure is basically the base in which economic growth is built upon. The study examines the role of infrastructure development in national economic growth. Better transport means greater access to public resources including schools, hospitals and other health facilities”. <> Roads, water systems, mass transportation, airports and utilities are all examples of infrastructure. Maintaining, expanding, and modernizing our infrastructure is vital to ensuring strong economic growth. 3$e LR�@p0}L�s��ռ�?e������We���&c������?Ƿ_'���4/�2��7ˏ%��q��'��������E�%��,�ǔb��@E�|��ſ��/_���������K�4�n?�|���g^)��/���(� OP ��c`i�p'0�[` �t��Xȃ�1 ��`lLE��l�\�Ÿγ�P�w�g�Bg< especially in light of the Mahinda Chintana development plan. Banks are also providing their customers, through SMS or E-mail, the status of their deposits and withdrawal. ROLE OF ECONOMIC INFRASTRUCTURE Economic infrastructure has played a very significantly positive role in the growth performance of countries in recent times. New economic geography with growth, finally, allows for a representation of transport infrastructure due to a more spatial approach. The adequate infrastructure in the form of road and railway transport system, ports, power, airports and their efficient working is also needed for integration of the Indian economy with other economies of the world. Besides, the railway requires improving the reach and quality of its passenger services. Masito Erlando Situmorang BPS Puncak Jaya Regency, Papua Province, Indonesia. Ports are another important infrastructure for international trade connectivity. Consequently, following the line of reasoning of the neoclassical growth theory, investment in infrastructure should promote economic growth eventually (Barro & Sala-i-Martin, 1992; Romer, 1994). ORCID 0000-0003-4534-9524. <>/ExtGState<>/XObject<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/Annots[ 17 0 R 18 0 R 19 0 R 20 0 R] /MediaBox[ 0 0 595.32 841.92] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> This large increase in the additional capacity is not impossible but actual delivery of power depends critically on solving serious fuel availability problems that arise relating to coal and natural gas. 1. The rise in labour productivity ultimately requires greater use of electric power which is obtained from primary sources such as coal, oil and gas. Importance 4. Nearly two-thirds of African farmers are cut off from national and world markets, because of poor infrastructure and market access. Share Your PPT File, Theory of Demographic Transition & Fertility | Population Growth | Economics. In UP, Haryana and other states there are interruptions of supply for many hours compelling big companies to install their own big generators. Besides, many BPO companies are providing outsourcing services through telecommunication. Srinivasan is right in saying that, the said performance of enterprises providing infrastructural services has been a factor in the poor performance of many developing countries including India. Having discussed the importance of infrastructure in general, we now discuss below the importance of sector-specific infrastructure for economic growth of a country. Unless it is significantly improved infrastructure will continue to be a bottleneck for growth and obstacle to poverty reduction”. Email: masitositumorang@gmail.com. In other words, we find market failure to achieve their socially optimal level. Emphasizing the importance of adequate infrastructure, authors of Economic Survey of India for the Year 2013 -14 quite rightly write, “Rural economic growth in recent years has put enormous pressure on existing infrastructure particularly on transport, energy and communication. 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