Economic development necessitates the construction of economic infrastructure. To this purpose, the theoretical underpinning for measuring the efficacy of economic infrastructure must be revealed, as well as the methodology for estimating the effectiveness must be established. There have been a number of qualitative and quantitative research that look into the economic impact of infrastructure up until now. However, it’s hard to conclude that a methodology for assessing such effectiveness has been agreed upon. The purpose of this essay is to address methodological issues that arise when measuring infrastructure effectiveness in terms of economic, physical-value, and spatio-temporal factors. The paper’s first section looks at theoretical issues with estimating the effectiveness of economic infrastructure. The authors do this by analysing previous studies on economic infrastructure as an economic notion and then systematising its specific features and roles in a novel method. The major metrics and technique for measuring the efficacy of economic infrastructure are presented in the second section. In this part, the authors provide a methodology for measuring the space-time effectiveness of economic infrastructure by using several indicators linked to physical and value aspects. The findings show that economic infrastructure’s contribution to the economy is linked to its economic effectiveness; however, the economic contents of these concepts are not the same, so it’s more reasonable to estimate economic effectiveness using a benefit-to-cost approach rather than a functional approach. This research could help governments and investors make better decisions about infrastructure spending.
Author (S) Details
Gwang-Nam Rim
Statistics Department, Faculty of Economics, Kim Il Sung University, Democratic People’s Republic of Korea.
Chol-Ju An
Foreign Trade Department, Faculty of Economics, Kim Il Sung University, Democratic People’s Republic of Korea.
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