The Impact of Infrastructure on Development Outcomes A Qualitative Review of Four Decades of Literature

However, studies based on randomized controlled trials have not tended to find a substantial short-term impact in the context of dispersed rural populations. Finally, there is rich literature on various transport infrastructure-to-development linkages, particularly for rural roads and for Sub-Sahara...

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Bibliographic Details
Main Author: Foster, Vivien
Other Authors: Vagliasindi, Maria, Gorgulu, Nisan, Straub, Stephane
Format: eBook
Language:English
Published: Washington, D.C The World Bank 2023
Subjects:
Online Access:
Collection: World Bank E-Library Archive - Collection details see MPG.ReNa
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245 0 0 |a The Impact of Infrastructure on Development Outcomes  |h Elektronische Ressource  |b A Qualitative Review of Four Decades of Literature  |c Vivien Foster 
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300 |a 65 pages 
653 |a Human Capital Formation 
653 |a Ports and Development 
653 |a Impact of Electrification 
653 |a Information and Communication Technologies 
653 |a Reliability of Supply 
653 |a Social Development 
653 |a Rural Roads Impact on Development 
653 |a Development Impact of Infrastructure 
653 |a Transport Infrastructure Impact on Development 
653 |a Highway Impact on Development 
653 |a Digital Infrastructure 
700 1 |a Vagliasindi, Maria 
700 1 |a Gorgulu, Nisan 
700 1 |a Straub, Stephane 
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520 |a However, studies based on randomized controlled trials have not tended to find a substantial short-term impact in the context of dispersed rural populations. Finally, there is rich literature on various transport infrastructure-to-development linkages, particularly for rural roads and for Sub-Saharan Africa. While households' income and consumption benefit from the existence of rural roads, highways are also found to contribute to firms' competitiveness. Similarly, public transportation, railways, and ports have positive impacts on the development process 
520 |a Policy makers have long used investing in public infrastructure as a means of reducing geographical disparities and promoting growth. The goal of this paper is to provide insights to development practitioners on designing interventions to maximize the development impact of infrastructure. For this, the paper presents a systematic qualitative overview of the literature, covering more than 300 studies conducted between 1983 and 2022, focusing on specific infrastructure sectors, namely digital, energy, and transport. The study also considers various dimensions of development impact, including output and productivity, poverty and inequality, labor market outcomes, human capital formation, and trade, to develop a nuanced understanding of the mechanisms through which infrastructure contributes to these development outcomes, focusing on low- and middle-income countries. As such, it is the most substantive effort of its kind to date.  
520 |a Overall, despite some mixed results, the overwhelming balance of evidence suggests that infrastructure improvements are critical in supporting the development process. Studies on digital infrastructure show that firm productivity, employment, and welfare increase with the arrival of broadband internet coverage. In addition, the availability of mobile phones improves coordination between producers and traders and hence reduces the price dispersion of agricultural products. Turning to rural electrification, significant literature documents the positive impact of infrastructure on household welfare, structural transformation, and human capital formation through increased labor force participation, more time spent on education, and increased indoor air quality. Investments in the reliability of power supply also contribute to firms' productivity.