Book contents
- Frontmatter
- Contents
- List of figures
- List of tables
- Acknowledgements
- 1 The megaprojects paradox
- 2 A calamitous history of cost overrun
- 3 The demand for megaprojects
- 4 Substance and spin in megaproject economics
- 5 Environmental impacts and risks
- 6 Regional and economic growth effects
- 7 Dealing with risk
- 8 Conventional megaproject development
- 9 Lessons of privatisation
- 10 Four instruments of accountability
- 11 Accountable megaproject decision making
- 12 Beyond the megaprojects paradox
- Appendix. Risk and accountability at work: a case study
- Notes
- Bibliography
- Index
6 - Regional and economic growth effects
Published online by Cambridge University Press: 05 July 2014
- Frontmatter
- Contents
- List of figures
- List of tables
- Acknowledgements
- 1 The megaprojects paradox
- 2 A calamitous history of cost overrun
- 3 The demand for megaprojects
- 4 Substance and spin in megaproject economics
- 5 Environmental impacts and risks
- 6 Regional and economic growth effects
- 7 Dealing with risk
- 8 Conventional megaproject development
- 9 Lessons of privatisation
- 10 Four instruments of accountability
- 11 Accountable megaproject decision making
- 12 Beyond the megaprojects paradox
- Appendix. Risk and accountability at work: a case study
- Notes
- Bibliography
- Index
Summary
In this chapter we focus on regional and economic growth effects of megaprojects. As in the previous chapter, our main purpose is to identify past problems that may prove useful in understanding and improving the decision-making process for such projects.
Recent years have seen a resurgence of interest in the impact of infrastructure on regional development and economic growth. Indeed, one of the arguments often advanced for committing public funds to infrastructure investments is that it will generate economic growth in general, in a region or a country, and/or in a particular local area. There are good theoretical and empirical reasons for approaching such claims with caution, we will argue. A hard-nosed approach to this subject is often warranted since much of the interest in various circles for infrastructure investments reflects rent-seeking behaviour. Such behaviour is explained by the circumstance that infrastructure investments may generate benefits to specific construction and user groups while the major part of costs is often borne by the taxpayers.
One of the arguments often advanced for committing public funds to infrastructure investments is that it will generate economic growth. There are good theoretical and empirical reasons for approaching such claims with caution.
Transport infrastructure and economic development
Both business and private persons use transport infrastructure. In general, infrastructure must be seen as an input into the production of a transport service, which in turn is used as an input into a final product or service demanded by consumers, such as a visit to a relative or the availability of a certain commodity in the local store.
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- Information
- Megaprojects and RiskAn Anatomy of Ambition, pp. 65 - 72Publisher: Cambridge University PressPrint publication year: 2003