The Contribution of the Infrastructure Sector to Economic Growth

Of all issues facing policymakers today, none is so compelling as the question of economic growth. This book is an empirical inquiry into the fundamental dynamics of the infrastructure sector and economic growth relationship at the different stages of the growth trajectory. Economic growth theory is studied to identify ways in which theories of growth can be applied to explain the phenomenon of growth as it relates to the infrastructure sector. Relevant literature and theory relating to state involvement in the infrastructure sector is also surveyed to ascertain if there is any basis for the public sector to invest in infrastructure to stimulate economic growth. Past and present debates on the need for public sector investment in infrastructure to deal with market failures are explored against the existence of government failures that overshadow such investments.