2.5 Impact of Infrastructure on Economic Development
2.5.1 Nature of Impacts
The nature of impacts are at least fourfold:
First, the availability of infrastructure and its nature act on both the supply and
the demand. It thus affects economic growth. Generally, the availability of infrastructure decreases production costs, which, in turn, influences international trade
through the costs and service quality (trade logistics), and hence affects competitiveness in export/import markets.
In undeveloped (rural) areas, for example, many sectors can access applications
of modern technology through telecommunications (Nilekani 2009) – which may
indicate centres of demand (consumption possibilities) as well as growth of alternative employment.
Table 2.3 Types of production
The production of goods
The production of services
Primary production
Secondary production
Tertiary production
The production of
goods made available
by nature
The production of processed products derived from the natural primary products
The production of services
Commercial
services
Personal
services
Farmer
Aeronautical engineer
Banker
Author
Fisherman
Builder
Communications
engineer
Clergyman
Fur trapper etc.
Cabinet maker
Exporter
Dentist
Herdsman
Carpenter
Importer
Detective
Lumberjack
Decorator
Insurance agent
Doctor
Miner
Electronic Engineer
Merchant-navy
captain
Editor
Oil driller
Engineer
Retailer
Entertainer
Pearl diver
Plastics engineer
Ship’s crew
Lecturer
Whaler
Potter
Stockbroker
Nurse
Refinery technologist
Transport driver
Policeman
Shipbuilder
Wholesaler
Psychologist
Steelworker
Teacher
Tailor
TV
personality
Undertaker
Vocalist
2.5 Impact of Infrastructure on Economic Development
47