Infrastructure and Productivity: An Unchartered Territory



There is typical competition among industrialized countries where some would like to establish leadership in economic and industrial performance. Without proper development and maintenance of a dynamic infrastructure there is unlikely to be any kind of industrial, trade, economic, or quality of life related leadership. Traditionally economists have considered only three components of economic activity: land, labor, and capital. From the perspective of this author, during 1970s, 1980s, and 1990s, Japan added one more element to the traditional three: management. Without management the traditional three cannot be put together and show economic advancement and industrial leadership. I would add even one more component: infrastructure. In the past, when the four components were discussed, infrastructure may have been a given, but in the twenty-first century this phenomenon must be separated from the above four. If a country has the traditional three and even an adequate management, but it does not have an appropriate infrastructure the country is not likely to go anywhere. Until recently, China and India suffered from that type of deficiency. I believe that the USA is losing its industrial leadership at least partly because it is not developing and maintaining a necessary infrastructure that would enable it to expand its GDP and enhance the quality of life for all of its citizens. This chapter explores just how the infrastructure contributes to the country’s productivity. It explores the conditions under which the infrastructure is likely to play a critical role in enhancing GDP or blocking its advancement.


Electronic Data Interchange Consumer Mobility Typical Competition Industrial Leadership Retailing Facility 
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Copyright information

© Springer New York 2011

Authors and Affiliations

  1. 1.Coggin College of BusinessUniversity of North FloridaJacksonvilleUSA

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