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

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dc.contributor.authorGorgulu, Nisan
dc.contributor.authorFoster, Vivien
dc.contributor.authorStraub, Stéphane
dc.contributor.authorVagliasindi, Maria
dc.date.accessioned2023-03-13T16:45:54Z
dc.date.available2023-03-13T16:45:54Z
dc.date.issued2023-03
dc.description.abstractPolicy 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. 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. 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.en
dc.identifierhttp://documents.worldbank.org/curated/en/099529203062342252/IDU0e42ae32f0048304f74086d102b6d7a900223
dc.identifier.doi10.1596/1813-9450-10343
dc.identifier.urihttps://openknowledge.worldbank.org/handle/10986/39515
dc.languageEnglish
dc.language.isoen
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesPolicy Research Working Papers; 10343
dc.rightsCC BY-NC 3.0 IGO
dc.rights.holderWorld Bank
dc.subjectDEVELOPMENT IMPACT OF INFRASTRUCTURE
dc.subjectRELIABILITY OF SUPPLY
dc.subjectIMPACT OF ELECTRIFICATION
dc.subjectRURAL ROADS IMPACT ON DEVELOPMENT
dc.subjectTRANSPORT INFRASTRUCTURE IMPACT ON DEVELOPMENT
dc.subjectHIGHWAY IMPACT ON DEVELOPMENT
dc.subjectHUMAN CAPITAL FORMATION
dc.subjectPORTS AND DEVELOPMENT
dc.subjectDIGITAL INFRASTRUCTURE
dc.titleThe Impact of Infrastructure on Development Outcomesen
dc.title.subtitleA Qualitative Review of Four Decades of Literatureen
dc.typeWorking Paper
dspace.entity.typePublication
okr.crossref.titleThe Impact of Infrastructure on Development Outcomes: A Qualitative Review of Four Decades of Literature
okr.date.disclosure2023-03-06
okr.date.lastmodified2023-03-06T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099529203062342252/IDU0e42ae32f0048304f74086d102b6d7a900223
okr.guid099529203062342252
okr.identifier.doi10.1596/1813-9450-10343
okr.identifier.doihttps://doi.org/10.1596/1813-9450-10343
okr.identifier.externaldocumentum34016090
okr.identifier.internaldocumentum34016090
okr.identifier.reportWPS10343
okr.import.id28
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099529203062342252/pdf/IDU0e42ae32f0048304f74086d102b6d7a900223.pdfen
okr.topicSocial Development::Poverty and Social Impact Analysis
okr.topicInformation and Communication Technologies::Telecommunications Infrastructure
okr.topicRural Development::Rural Roads & Transport
okr.topicUrban Development::Transport in Urban Areas
okr.topicUrban Development::Rural Urban Linkages
okr.unitChief Economist Infrastructure (INFCE)
relation.isAuthorOfPublicationcc1834b5-8dba-402f-8845-28038f20b8bf
relation.isAuthorOfPublication059954cc-a249-5318-9829-61a08ded2637
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relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
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