Infrastructures Development, Environmental Quality and Economic Growth in Nigeria

The Earth as a planet supports human life, living and activities, attracting extensive and intensive socioeconomic influences on the economy. Such activities like infrastructures development exerts increasing and divers environmental quality concerns and hence the economic growth. While these variables appear interrelated due to many factors including population growth, urbanisation, etc. However, the relationship between infrastructures, environment and economic growth is not largely known especially in Nigeria. This study therefore investigated their relationship using time series data between 1990 and 2019 by adopting Co-integration estimation technique through the Bound test approach of auto regressive distributive lag method using percentage share of building and construction sector of gross domestic product (GDP), carbon dioxide, population growth GDP growth rate, etc. as variables. The study revealed that the infrastructures development and environmental quality explain economic growth and have both short and long run relationships while specifically population growth and agriculture, forestry, fishing, value added variables are positively significant to economic growth. The findings evidences of both short and long run relationships among the variables are significant and it is consequently recommended that new roles for infrastructure sets and production processes should consider environmental quality mindsets to achieve positive green economy outcomes in Nigeria. JEL Classification: O18, O44, Q5

Prospects and Impediments of Railway Infrastructure Development in Ghana: Impact of Standard Gauge Railway (SGR) Technology

There is limited understanding concerning the practicable challenges that could impede the developmental process of railway infrastructure projects, and the possible negative effect of the Standard Gauge Railway (SGR) technology in Ghana. Given that the majority of the population are unfamiliar with the newly planned railway system. Our research intends to contribute towards the development of human capital and elevating the standard of living through the assertion of productive policies to ensure rapid infrastructure development by highlighting not only the socio-economic impact, but the negative impact of the railway infrastructure in the society. Also, this study discusses the possible challenges that could hinder the railway infrastructure development process. This study employs face-to-face interviews and Focus Group Discussions (FGDs) interview sessions that assimilate 35 respondents. Data collected is transcribed verbatim and analysed thematically. The findings reveal that corruption, unstable political discourse, lack of modern technology, and the impact of the Covid19 pandemic are among the critical challenges to hinder the progress and completion of the railway infrastructure development. By-laws should be designated ensuring that every uncompleted national project must be completed and not abandoned by the successive governments regardless of political differences. JEL Classifications: R4, O1, Q18, Q55, Q51

Heterogeneous Causality Between Telecommunications and Economic Growth: An Application of Hurlin–Venet Process to the Indian States

Keeping in mind the importance of telecommunications sector for India especially post the reform of 1991, the study seeks to study the causal relationship between telecommunication and economic growth for selected panel of 17 Indian states by implicitly taking into account panel heterogeneity. Using Hurlin–Venet causal mechanism, the study investigates homogeneous causality (HC) as against heterogeneous causality (HEC). Homogeneous non-causality and HC hypothesis both of which assume homogeneity are rejected in both the directions thereby implying that Indian panel is made up of heterogeneous cross sections. After this HEC tests are conducted namely heterogeneous non-causality (HENC) and HEC for each and every cross section. The results from HENC and HEC test show that six states show up unidirectional causality from economic growth to telecommunication, four states show unidirectional causality from telecommunications to economic growth, four states show up bidirectional relationship and three states show up no causality. The results are robust to different lags for both our dependent as well as independent variables. This implies that state level differences are very much relevant for India and thus policies suitable for each state would be guided majorly by direction of relationship that is true in a particular state economy. JEL Classification: C23, L96, O40

Barriers to Adoption of Commercial Green Buildings in India: A Review

The global construction sector accounts for 13.2% of the world’s gross domestic product (GDP). It not only contributes to the economic growth engine of the world but also climate changes due to its high energy footprint. Sustainable buildings have the potential to reduce the adverse impacts of the construction industry, but their adoption is slow due to hindrances. The aim of this paper is to study literature on barriers to green building adoption to date and highlight the overlapping and unique barriers specific to India in comparison to a few prominent countries, and provide solutions and recommendations for future research. The methodology has been an extensive literature review of the barriers to green building (GB) adoption. The key findings, namely barriers, were classified under economic, governmental, organizational and social perception, information, technology and material categories. Barriers unique to India and a few other developing countries are an extension of project schedules, lack of research and developmental works, lack of public motivation, poor building code enforcement, high payback period, uncertain supply of green materials, improper implementation of policy framework and performance of green building technologies (GBT’s). The GB construction sector is fragmented around the world. Even the GB definition is not the same across the globe although the environmental aspect is the same. Similarly, there are unique and overlapping challenges in GB adoption globally. Buildings in usage perspectives can be classified into residential and non-residential. This study looks only at non-residential GBs due to their homogenous nature. There is a dearth of specific studies related to the adoption of GBs in India. This study aims to fulfil the gap of India’s standing in the barriers to GB adoption with respect to the developed and developing countries. JEL Classification: I18

Rethinking the Concept of Municipal Bonds to Improve Urban Governance in India

The pace of urban development in India has been slow, unorganised and unorderly as a result of inadequate planning and implementation of projects, mismanagement and misutilisation of funds, bureaucracy in the decision-making process and the reliance of urban local bodies on traditional forms of financing such as taxes and government grants. These factors not only restrict effective urban governance and development, but also create several dilemmas for comparatively modern and efficacious forms of urban financing. A perfect example of this is the unattractiveness and underutilised potential of municipal bonds for urban financing despite the fact that it was introduced in India in the year 1997. In pursuance of the above, this article aims to identify the problems associated with urban financing through municipal bonds and also makes an attempt to provide solutions which will not only help in creating a more reliable and effective form of urban financing for urban local bodies but also improve urban governance and permit the general public to invest in urban infrastructure development activities. JEL codes: K220, R510

Impact of Community Social Development Projects on Community Improvement: Case of Ibule-Soro Community, Ondo State, Nigeria

Infrastructure is important to livability of any community, hence efforts have been made by the government and the communities to provide these infrastructures. This is because it is evident that only government cannot provide all the needed infrastructures, so there is need for collaborative efforts which is done by participation of the community in the implementation of the provision of infrastructure. The collaborative effort was adopted by the Community and Social Development Projects (CSDP), a World-Bank assisted project. This study was carried out in Ibule-Soro community, in Ifedore Local Government Area, Ondo State. In all, 400 buildings were identified in the community by the community leaders out of which 10% were selected, which gave a sample size of 40 for the questionnaire administration; discussion session was held with the leaders of the community. Concept of community development and CSDP was critiqued. Findings revealed that the community is not poor, as 65% of the respondents earned above N30,000 which is the minimum wage in Nigeria, this may be due majorly to the fact that 85% of the respondents are engaged in one or the other activity like government employment, private sector or self-employed. Also, 65% of the respondents submitted that the community heard about CSDP through the community leader. It took less than six months between when the community informed the office and when the office responded to the community. The projects implemented in the community are renovation of the block of six classrooms in the Jooro high school and extension of 31 electric poles in Ibule-Soro community. The projects have lots of positive impact on the community as it has enhanced increase in the number of students’ enrolment at Jooro high school and the electric poles extension has improved the electric voltage in the community. The use of the participatory approach to implementation of community projects was recommended for adoption in similar future projects.

Foreign Direct Investment and Growth Nexus: Further Evidence from Africa’s Largest Economy

The study investigated the effect of foreign direct investment (FDI) on economic growth in Nigeria, which is currently Africa’s largest economy, and also determined the long-run relationship between FDI and economic growth in Nigeria from 1981 to 2017. The study adopted the autoregressive distributed lag modelling approach and ordinary least square in the analysis. The empirical results revealed that FDI has a positive and significant relationship with economic growth in Nigeria within the period under review. The study concluded and recommended that Nigerian Government should formulate policies that will attract more FDI in all sectors of the economy especially in the service and manufacturing sectors, so as to improve the infrastructural facilities and production of goods in the country and also expand its labour force. Finally, there is need to improve the educational policy of the country in order to raise the stock of human capital in the country that will make useful policies for the attraction for productive FDIs in the country. JEL Classification: E22, F21, F23, F43

Interactions among Infrastructure, Trade Openness, Foreign Direct Investments and Economic Growth in India

This study examines the dynamic interrelationships among infrastructure, trade openness, foreign direct investments (FDI), economic growth, fixed capital formation, labour and inflation rate in the context of India for the period 1970 to 2018 through the application of Toda–Yamamoto (TY) causality test and the auto-regressive distributed lag (ARDL) bounds testing approach to cointegration to offer policy implications of the effectiveness of these important macroeconomic determinants in the short and long-run. This article developed two composite indices, namely, infrastructure development index (INFI) and trade openness index (TOI) and used to see the effectiveness of infrastructure indicators and trade openness on economic growth along with other variables of interest. Results suggest a strong causal short and long run interrelationship among infrastructure, FDIs, trade openness and economic growth during 1970–2018. In the long run, a bi-directional relationship exists between INFI and GDP, suggesting that India should expedite construction of adequate and expanded infrastructure facilities in the economy and among others things, frame its policy in a more liberalised manner for various sectors including infrastructure with a view to attracting more FDI inflows and making more openness to trade and globalisation within the environment of ease of doing business that would help to sustain higher economic growth for long period, accomplishing the goal of US$5 trillion economy by 2024–25. JEL Classification:H54, O1, H4, O4, P33, L9, C32

Infrastructure for Structural Transformation: A Comebackof Planning?

This article examines how infrastructure development may best support structural transformation in developing countries. It critiques ongoing emphasis by multilateral financial institutions and other actors on infrastructure as an asset class and their focus on bankable projects. The article considers this approach too narrow for real economic transformation and argues development requires a more holistic approach, one that includes project assessment based on developmental criteria. Drawing on the pioneers of development and more recent literature on infrastructure systems, the article proposes development planning as a more promising approach and assesses how developing countries are faring regarding infrastructure planning for growth and transformation. JEL Classification: H54, O21, O40, P11

Investigating the Roles of Physical Infrastructure, Financial Development and Human Capital on Economic Growth in Bangladesh

This article investigates the dynamic relationship among physical infrastructure, financial development, human capital and economic growth in Bangladesh, employing Autoregressive Distributed Lag (ARDL) bound co-integration and Granger causality test for the period 1985–2019. The study finds a significantly positive long-term impact of physical infrastructure and human capital on economic growth. However, the effect of financial development on growth is found to be negative, and the result suggests that financial development will take place with economic growth. From the policy perspective, this study emphasises increasing investment in physical infrastructure and human capital for Bangladesh to foster long-term economic growth.