Topic Videos
Infrastructure Gaps
- Level:
- A-Level
- Board:
- AQA, Edexcel, OCR, IB, Eduqas, WJEC
Last updated 22 Dec 2018
Infrastructure gaps limit economic growth & human development - this short revision video helps to explain why
Infrastructure Gaps
Infrastructure gaps limit growth & human development because
- It increases supply costs for businesses – this causes higher prices – therefore hitting real incomes for consumers
- Reduces geographical mobility of labour causing higher structural unemployment (labour market failure)
- Damages export competitiveness and limits intra-regional trade (e.g. trade within the sub Saharan Africa continent)
- Can make a country less attractive to inward foreign direct investment (FDI) which might then slow economic growth
- Makes an economy vulnerable to effects of climate change / natural disasters such as flooding and earthquakes
- Contributes to gender inequality
Here is a good example of the economic cost of poor infrastructure on the Indian economy.
"The poor quality of electricity supply imposes major costs on the Indian economy; electricity shortages, for example, reduce manufacturing plant revenues by 5-10%."
You might also like
The Cross Rail Project
22nd September 2014
Cost Benefit Analysis - The Crossrail Project
27th April 2014
Flood defences and the Public Goods debate
7th January 2014
Competitiveness and Economic Policies
Study Notes
India - Economic Growth and Development
Study Notes
World Bank
Study Notes
The importance of infrastructure for development
12th November 2014