Economics
Student Videos
Economic Importance of Infrastructure
- Level:
- AS, A Level, IB
- Board:
- AQA, Edexcel, OCR, IB, Eduqas, WJEC
Last updated 1 Aug 2018
A short revision video on the importance of infrastructure spending for both aggregate demand and long run aggregate supply. Economic growth places rising demand on a country's infrastructure assets and the UK is ranked only 28th out of 138 countries globally for the perceived quality of our transport, telecoms, power and other critical infrastructure.
What is infrastructure?
- Spending on new sewers, roads, wind farms, telecommunications networks and ports by both the private and the public sector
- Infrastructure investment is vital for sustainable economic growth and research shows that the UK lags behind its major competitors in the quality of its infrastructure assets.
- Infrastructure projects tend to have large upfront costs and benefits that add up over many years
- Demands on infrastructure such as roads, railway, waste management, energy will rise along with economic growth and a growing population
- Infrastructure needs to be resilient to cope with the effects of rapid urbanization and climate change. According to the World Bank, over the next 35 years, urban populations are estimated to expand by an additional 2.5 billion people — almost double the population of China.
Transport infrastructure as an engine for growth and development - reducing intra-regional trade costs and stimulating local business activity en route #econ4 #ibecon https://t.co/7DilUUUNOB
— Tutor2u Geoff (@tutor2uGeoff) August 1, 2018
You might also like
Google's £1bn Investment in the UK Economy
15th November 2016
Economic Growth (Revision Quizlet Activity)
Quizzes & Activities
Poor management cited as a key supply-side weakness for the UK
11th December 2018
Productivity and Economic Growth
Study Notes
What are Supply-Side Policies?
Study Notes
The UK Productivity Gap
Study Notes
Revision Video on Economic Growth in the UK
Student Videos
Competitiveness and Economic Policies
Study Notes
Recommended

Exam support for 2022
Online Grade Booster Courses for A-Level Exams in May & June 2022
Exam technique, advance information support, live revision and more from the tutor2u subject specialist teams