Economic Development

Topics: Economics, Economic growth, Capital Pages: 7 (1884 words) Published: December 2, 2012

Governments the world over have long been investing in infrastructure in the hope of boosting economic development of their country. To study the relationship between infrastructure and economic development, we compared two journals; Infrastructure and Local Economic Development by Rives, J & Heaney, M. (1995) and Infrastructure and Economic Growth: The Nigeria Experience 1980-2006 by Enimola, S (2010). We chose these journals as the journal by Rives, J looked at the approach on a community/state level whereas the journal by Enimola, S looked at it at a national level. Hence, we were able to look at the topic at a micro and macro level. We compared the objectives of both journals, along with the methodological approach, definition and calculation method. We also studied the results of the study in the journals and compared the effect of different variables on economic development. Objective

Rivas and Heaney: Infrastructure and Local Economic Development

The objective of the journal by Rives and Heaney is to establish the relationship between infrastructure and the economic development of a community. Although there is a well-established linkage between infrastructure and economic development at the national level, few researches have been done on the community or state level. This research is important as the decision on infrastructure spending is done at the local level, regardless of whether it is funded by the local or federal government. It is hoped that from the insights of these journals, local governments can make better decisions on infrastructure investments and maximize economic growth as a result. Enimola: Infrastructure and Economic Growth

The purpose of the Enimola article is to establish whether there is a linkage between infrastructure investment levels and economic growth in the Nigerian economy over time. Although there is clear linkage between them established in other countries, this article specifically examines whether there is a significant positive relationship between infrastructure investment, especially in the energy, communication and transportation subsectors and economic growth of Nigeria over time.

Comparison of Objectives

Despite broadly looking at the same subject matter, both journals look into the less threaded niche areas of research at the time of the writing of those journals. The insights from the researches are relevant to different stakeholders. Enimola’s research is useful to national level policymakers while Rivas and Heaney would interest local level policymakers. Methadological Approach Comparison

The different goals of these researches also constitute different methodological approach in conducting the research.

Rivas and Heaney wanted to examine the issue in a local level. Therefore they approach the problem in a micro level. Enimola, on the other hand uses the macro approach when conducting the experiment. This distinction determines their direction in conducting the research. Examples of things affected are the model of choice, the definition of variables and the data gathered and used.

Definition of Variables

Enimola defines infrastructure in economic and social dimensions. Social dimension infrastructure covers social services such as education and healthcare while economic dimension infrastructure are a group of hardcore economic activities such as energy, transportation and communication services. Rivas and Heaney on the other hand classifies infrastructure into network and point infrastructures. Point infrastructures are amenities in a particular community such as the hospitals, schools and water and sewerage systems. A network infrastructure on the other hand connects one locality to another such as interstate highways, canals and trains. Distinctions such as these are important as it will affect the data collected for each of the variables and how it is calculated and manipulated.

Model Of Choice

Enimola’s model is...
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