31 Aug 2022

132

The Importance of Infrastructure for Economic Growth

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Academic level: College

Paper type: Coursework

Words: 275

Pages: 1

Downloads: 0

The three vital questions that determine if the infrastructure is critical or not include whether infrastructure influences the growth of an economy and analyzing why western countries are more advanced than the other (Bigio, 2004). The other question is why developed countries invest in infrastructure. 

Importance of Physical Infrastructure 

Once the goods have been produced, there is need to transport them to airports and ports for transportation to other countries and states. It means that there is a need for excellent roads, in this case, to ensure that there is transportation; otherwise, there will be delays that might lead to a reputational and economic loss ( Bigio, 2004) . Other vital elements of infrastructure include power and water that are needed in the production process. Evidently, infrastructure is vital to the growth and development of a country and community. 

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Critical infrastructures in my area, more specifically in my town include roads, power, and water. The most crucial infrastructure is roads because it helps in the transportation of goods to and from the town and also affects all the other aspects of production. If there were no roads then businesses would lack the products needed to operate (Bigio, 2004). The second most important infrastructure is power because if there were power blackouts and outages in what is known as power holidays then production in every sector of the economy would cease and thus leading to losses. Finally, water is vital in the production process and lack of it can lead to delays and can negatively affect the quality of production. 

Conclusion 

Evidently, no nation can develop without investing on infrastructure because they enable economic growth and development. The most crucial infrastructures include roads, power, and water. Roads facilitate the transportation of goods while power and water ensure that there is the efficient production of goods. 

References 

Bigio, A. G., & Dahiya, B. (2004).  Urban environment and infrastructure: Toward livable cities . Washington, DC: World Bank.

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StudyBounty. (2023, September 14). The Importance of Infrastructure for Economic Growth .
https://studybounty.com/the-importance-of-infrastructure-for-economic-growth-coursework

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