Business Support as Ongoing Policy Helping Permanency Companies in the State of Colima in Mexico

The objective of this chapter is to propose the implementation of a plan of continuous support from the government of the State of Colima in Mexico to start-ups and micro-enterprises classified as belonging to the trade and services sector, policy public, to increase the economic units that manage to stay beyond three years and thereby derive social benefits such as employment generation, greater wealth and improving the quality of life of the population of the state. This proposal is given based on the sequential design procedure policies. The method used is the analysis of the national situation. It can be concluded from the analysis on the proposal for a design process of public policy based on the matrix of policy alternatives under the assumption that continuity and permanence of the companies will be positively impacted in the current rates of survival if companies born have the support of the government.

Foreign Direct Investment

This chapter indicates the overview of Foreign Direct Investment (FDI); FDI entries and export; FDI and spillover effects; FDI, human capital, and absorptive capacity; and the significance of FDI in the global economy. FDI is an investment in a business by an investor from another country for which the foreign investor has control over the company purchased. FDI offers a source of external capital and increased revenue. FDI can be a tremendous source of external capital for the developing countries, which can lead to economic development. Through FDI, capital goes to whatever businesses have the economic growth anywhere in the world. FDI helps in increasing the output through the utilization of advanced technology and management techniques. FDI benefits investors, businesses, and the global economy. FDI contributes to foreign exchange earnings, employment creation, and the increases in incomes in the global economy.

Infrastructure and Tourism Development

Infrastructure is not the engine but the wheels of economic development. Since the onset of economic crisis, followed by economic reforms, the importance of infrastructure development has been emphasised through policy, pronouncements, higher budgetary allocation of funds, formation of Infrastructure development, etc. It opens out a region by providing an access to its tourist places. In its absence, the resource potential for tourism can't be of any benefit. In addition to the common infrastructure tourism development requires special infrastructures, which is growing importance to India and foreign tourists in recent years. This chapter tries to investigate the significance of infrastructure as a factor in tourism development by applying panel data estimation techniques upon 27 Indian States for the period 2005-2015 and finds that the infrastructure has been contributing positively to tourist arrivals, particularly from India and abroad. Apart from this we have also shown that tourist arrivals from host along with infrastructure expenditure will affect Indian tourism in a positive manner.

Availability of Infrastructure Facilities in India

It has been a well-accepted fact that there exists a strong relationship between infrastructure and economic growth. Like many other developing countries, lot of emphasis has been placed on the importance of investments in infrastructure for fostering economic growth in India. A state-wise analysis of five support infrastructure in India shows improvement in infrastructural facilities in 2014 as compared to 2007. Rural–urban gap is converging for most of the states, showing that the rural areas are catching up with their urban counterparts. However, the availability of infrastructure can be termed anything but inadequate. The infrastructural deficits can be met possibly through better management of publicly funded projects and greater role of private players. Given the resource crunch at government level, private financing of investment is simply a matter of necessity rather than a matter of choice. Therefore, this chapter argues for creation of an enabling environment and to facilitate the infusion of adequate private fund while keeping the interest of vulnerable sections in mind.

The Impact of Infrastructure on Growth in Developing Countries

Infrastructure and growth nexus has been debated in the literature since 1980s. This debate has a vital importance for the sake of developing countries. These countries need to grow faster in order to catch-up their advanced counterparts. Thus, it is important to detect the effect of infrastructure on growth. Bearing in mind this fact, we develop a standard growth regression in this present chapter using per capita GDP growth rate as a dependent variable. Infrastructure is added to the model as an index constructed from the indicators of infrastructure: total electric generating capacity, total telephone lines and the length of road network. We also employ set of instrumental variables comprising 29 developing countries between 1990 and 2014. In order to estimate our dynamic panel data we prefer GMM estimators. According to our empirical analysis, we can claim that infrastructure has a positive and significant impact on growth. But this impact is smaller than the earlier studies predict.

Infrastructural Development

Development of infrastructure industries is essential to enhance the growth of a developing country. The present chapter attempts to examine the impact of infrastructure on Gross Domestic Product and Per Capita Gross Domestic Product of six SAARC countries from the period 1990-91 to 2013-14. The model is mis-specified whenever we have used the restricted panel data model. We have derived the results by employing the unrestricted panel data model. Impact of road, internet users and total electricity production on the level of GDP as well as on the level of PCGDP is highest for India among the all SAARC countries. India has also the highest rate of growth of GDP over the entire period. Rate of growth of PCGDP is highest for Sri Lanka followed by India.

The Impact of Infrastructure on Growth and Development

Infrastructure development is considered a key factor in promoting economic growth and attracting foreign investors for sustainable production and productivity. Conversely, inadequate levels of infrastructure constrain economic growth, a situation developing countries find themselves in. This requires the government to invest in infrastructure supplemented by external financing. This chapter, therefore, discusses how levels of infrastructure development affect economic growth in Ghana, since 1986 to date. The focus is on road transport infrastructure and its impact on economic growth under successive Ghanaian governments. Using the Cobb-Douglas production function and Vector Auto-regression (VAR) approach our analysis shows a positive relationship between infrastructure development and economic growth. This explains governments' improved allocation and expenditure on infrastructure development and maintenance in the 2000s. Ghana governments' attempts to plan and prioritize development of infrastructure, roads in particular, and create a culture of maintenance are targeted at raising the country's competitiveness and attractiveness to foster growth of all sectors of the economy.

Internet Use and Economic Growth

A good infrastructure is actually the base behind the growth of an economy. In the present age of globalization accessibility of information is a very important component of infrastructure. Studies carried out on the effect of internet on economic growth are mostly either on high income countries only or on a large number of countries belonging to different income groups. Keeping in mind the differential impact of internet on economic growth of countries with different initial conditions, we have attempted in this chapter a study on the impact of internet use on economic growth in 39 lower middle income and low income countries during 2002-2011. Applying panel data regression techniques we have found a positive significant impact of internet use on economic growth of low income countries. The emergence of crisis adversely affected this growth process, overruling the positive impact of internet use.

Critical Infrastructure Protection in Developing Countries

Not all infrastructures are critical. In most countries' definitions, a critical infrastructure (CI) is a collection of indispensable assets that provide an essential support for economic and social well-being, for public safety and for the functioning of key government responsibilities. CI assets can be classified into three broad categories: Physical, Cybernetic and Human. In the present era, Information and Communication Technology sector (e.g., Cloud Computing, Big Data, Internet of Things) can be regarded as the backbone of the economies of developed and the developing countries worldwide since they provide basic services to all segments of a society. Critical infrastructure protection (CIP) is a concept du jour in many developed countries. The present chapter discusses the method of protecting critical infrastructures in developing countries. It observes many developing countries experiencing massive growth in Internet capacity and the use of Internet-based technologies. Attacks on the information infrastructure can severely affect the ability of a country to function effectively.

Financial Infrastructure and Economic Growth

This chapter attempts to explore both a theoretical and empirical relationship between financial infrastructure and real sector of the Indian economy. It first presents an endogenous growth model where economic growth, proxied by the incremental output-capital ratio, depend on the financial infrastructure through three routes, namely, by changing the quantity of investible resources or by affecting the efficiency of utilization of a given quantity of resources or both, of which the former can either be through change in the amount of savings channeled to investment or change in the rate of savings. A time-series econometric analysis shows that the financial sector variables can explain near about 96% of the changes in real economic growth in India, which is an excellent goodness of fit. It concludes that the development of the financial infrastructure helps the Indian real sector grow both in the short-run and in the long-run. Unlike contemporary literature that prescribes diminished role, our study suggests a greater role of the govt. to ensure long-run economic growth.