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Government quality and returns to infrastructure investment

Government quality and returns to infrastructure investment

These findings claim that positive rates of returns from infrastructure investment are mediated by the current presence of adequate government institutions. Only certain types of transport infrastructure investment are connected with higher growth over the regions of Europe. Specifically, improvements in secondary road network in sound government quality conditions are associated with higher growth. In comparison, the very popular motorway development schemes which were at the centre of development strategies mainly in the periphery of Europe aren’t linked to the expected economic outcomes, even if promoted by credible, competent, and transparent local governments (which isn’t always the case).