The impact of infrastructure investment on economic growth in the United Kingdom

Journal article

Seidu, R.D., Young, B., Robinson, H. and Michael, R. (2020). The impact of infrastructure investment on economic growth in the United Kingdom. Journal of Infrastructure, Policy and Development. 4 (2), pp. 217-227. https://doi.org/10.24294/jipd.v4i2.1206
AuthorsSeidu, R.D., Young, B., Robinson, H. and Michael, R.
Abstract

ABSTRACT
Infrastructure investment has long been held as an accelerator or a driver of the economy. Internationally, the UK ranks poorly with the performance of infrastructure and ranks in the lower percentile for both infrastructure investment and GDP growth rate amongst comparative nations. Faced with the uncertainty of Brexit and the likely negative economic impact this will bring, infrastructure investment may be used to strengthen the UK economy. This study aims to examine how infrastructure funding impacts economic growth and how best the UK can maximize this potential by building on existing work.

The research method is based on interviews carried out with respondents involved in infrastructure operating across various sectors. The findings show that investment in infrastructure is vital in the UK as it stimulates economic growth through employment creation due to factor productivity. However, it is critical for investment to be directed to regional opportunity areas with the potential to unlock economic growth and maximize returns whilst stimulating further growth to benefit other regions. There is also a need for policy consistency and to review UK infrastructure policy to streamline the process and to reduce cost and time overrun, with Brexit likely to impact negatively on infrastructure investment. Keywords: infrastructure; economic growth; investment; construction

Keywordsinfrastructure; economic growth; investment; construction
Year2020
JournalJournal of Infrastructure, Policy and Development
Journal citation4 (2), pp. 217-227
Digital Object Identifier (DOI)https://doi.org/10.24294/jipd.v4i2.1206
Publication dates
Online31 Dec 2020
Publication process dates
Accepted13 Nov 2020
Deposited04 Jan 2021
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