Infrastructure Investment in Industrial Policy Design

  • Turan ErolEmail author
Living reference work entry
Part of the Sustainable Development book series (SD)


Infrastructure investment is critical for industrialization and technology-oriented development as it provides the basis for further private investments, capacity expansion, and competitiveness. Therefore, planning and realization of the desired infrastructure investments are an integral part of industrial policy design. The experience shows that efficiency of infrastructure development at almost every stage from feasibility to construction and operation can be increased through a proper networking and process management. Private sector involvement through public private partnership models can bring additional gains in especially financing and construction phases. We review the recent progress and country experiences at different industrialization stages to apprise the diversities of infrastructure investment in industrialization and development. We discuss how efficiently are they prioritized and financed as a part of a broader industrial policy. Given that financing has always been a constraint on growth and development, we propose solutions for sustainable infrastructure investment, industrialization, and development.


Infrastructure investment Industrial policy Sustainable development Public private partnership Emerging markets 


  1. Aldred D (2012) Urbanization: a major driver of infrastructure spending. Citi Perspectives 6 (Q1/Q2).
  2. Asian Development Bank (2012) Infrastructure for supporting inclusive growth and poverty reduction in Asia. Asian Development Bank, Mandaluyong CityGoogle Scholar
  3. Berechman J, Paaswell RE (2005) Evaluation, prioritizing, and selection of transportation infrastructure projects in New York City. Transportation 32:223–249CrossRefGoogle Scholar
  4. Bhattacharya A, Oppenheim JSN (2015) Driving sustainable development through better infrastructure: key elements of a transformation program. Brooking global working paper 91Google Scholar
  5. Biller D, Nabi I (2013) Investing in infrastructure: harnessing its potential for economic growth in Sri Lanka. World Bank, Washington, DCCrossRefGoogle Scholar
  6. Bryceson FB, Bradbury A, Bradbury T (2008) Roads to poverty reduction? Exploring rural roads’ impact on mobility in Africa and Asia. Dev Policy Rev 26(4):459–482CrossRefGoogle Scholar
  7. Brynjolfsson E, McAffe A (2014) The second machine age, 1st edn. W.W. NortonGoogle Scholar
  8. Calderon C, Serven L (2004) The effects of infrastructure development on growth and income distribution. World Bank working paper. World Bank, Washington, DCGoogle Scholar
  9. Conndot- Connecticut Department of Transportation (2013) Analyzing the economic impacts of transportation projects. Report prepared by the Connecticut Academy of Science and Engineering (CASE)Google Scholar
  10. Dissou Y, Didic S (2013) Infrastructure and growth. In: Cockburn J et al (eds) Infrastructure and economic growth in Asia, economic studies in inequality, social exclusion and well-being. Springer International Publishing, ChamGoogle Scholar
  11. Erol T, Özütürk D (2011) An alternative model of infrastructure financing based on capital markets: infrastructure REITs in Turkey. J Econ Coop Dev 32(3):65–88Google Scholar
  12. ESIA (2011) Environmental and social impact assessment for the Eurasia Tunnel project. Istanbul. Volumes I–II.
  13. Estache A, Fay M (2007) Current debates on infrastructure policy. Policy research working paper no 4410. World Bank, Washington, DCGoogle Scholar
  14. Fay M, Toman M, Benitez D, Csordas S (2011) Infrastructure and sustainable development. In: Fardoust S, Kim Y, Sepúlveda C (eds) Postcrisis growth and development: a development agenda for the G-20: overview. World Bank, Washington, DCGoogle Scholar
  15. Felsinger K (2011) Public-private partnership handbook. World Bank.
  16. G20/OECD (2015) Draft report on investment strategies. OECD report to G20 Finance Ministers and Central Bank GovernorsGoogle Scholar
  17. Genberg H (2015) Capital market development and emergence of institutional investors in the Asia-Pacific region. MPDD working paper 03.
  18. Home Treasury (2014) National infrastructure plan. Home Treasury, UKGoogle Scholar
  19. Jones S (2004) Background paper: contribution of infrastructure to growth and poverty reduction in East Asia and the Pacific. Oxford Policy Management, Oxford. Google Scholar
  20. Karydas DM, Gifun JF (2006) A method for the efficient prioritization of infrastructure renewal projects. Reliab Eng Syst Saf 91(1):3559–3574CrossRefGoogle Scholar
  21. Kim B (2006) Infrastructure development for the economic development in developing countries: lessons from Korea and Japan. GSICS working paper series 11. Kobe UniversityGoogle Scholar
  22. KPMG (2015) Will technology disrupt our existing and future infrastructure?
  23. Kwak YH, Chih Y, Ibbs JW (2016) Towards a comprehensive understanding of public private partnerships for infrastructure development. Calif Manag 51(2):51–78CrossRefGoogle Scholar
  24. Llanto G, Navarro A, Ortiz K (2015) Infrastructure financing, public-private partnerships, and development in the Asia-Pacific Region. MPDD working paper 15/01.
  25. Marcelo D, Mandri-Perrott C, House S, Schwartz J (2015) Prioritization of infrastructure projects: a decision support framework. World Bank PPP Group, Washington, DCGoogle Scholar
  26. McKinsey Global Institute (2013) Bridging global infrastructure gaps. Report prepared in collaboration with McKinsey’s Capital Projects and Infrastructure PracticesGoogle Scholar
  27. McKinsey Global Institute (2016) Bridging global infrastructure gap. McKinsey’s Capital Projects and Infrastructure Practice reportGoogle Scholar
  28. National Council for PPP (2016) Overview mission about NCPPP.
  29. PGlobal Consultancy (2013) Assessing the economic benefits of Marmaray.
  30. Skietrys E, Raipa A, Bartkus VE (2008) Dimensions of the efficiency of public- private partnership. Eng Econ 58(3):45–50Google Scholar
  31. Steetanah B, Ramessure S, Rojid S (2009) Does infrastructure alleviate poverty in developing countries? Int J Appl Econ Quant Stud 6(2):18–36Google Scholar
  32. Straub S (2008) Infrastructure and development: a critical appraisal of the macro-level literature. The World Bank, Washington, DC. doi: 10.1596/1813-9450-4590 CrossRefGoogle Scholar
  33. Swan W (2016) Financing sustainable development: what can we learn from the Australian experience of reform? Asia-Pac Dev J 22(2):135–164CrossRefGoogle Scholar
  34. Veloso F, Soto JM (2001) Incentives, infrastructure and institutions: perspectives on industrialization and technical change in late-developing nations. Technol Forecast Soc Chang 66:87CrossRefGoogle Scholar
  35. World Bank (2013) Financing for development post 2015.
  36. World Bank (2015) Transformation through infrastructure. The World Bank GroupGoogle Scholar
  37. World Bank (2016) Infrastructure Database. The World Bank GroupGoogle Scholar

Copyright information

© Springer Nature Singapore Pte Ltd. 2017

Authors and Affiliations

  1. 1.Department of EconomicsIstanbul Zaim UniversityIstanbulTurkey

Personalised recommendations