Does Infrastructure contribute to Inclusive Growth?
Author(s) : Zakia Batool Saba Bokhari Muhammad Akbar
In many developing countries, the problem of income inequality and unemployment is rising very fast while at the same time, most of the individuals living in these economies do not have access to basic necessities. Such a situation causes economic and social restlessness and calls for a change in economic strategies. For solutions, the concept of inclusive growth is emerging as a keynote discussion among economists around the world. Human and physical infrastructure is one of the strong candidates that can help fight against unemployment and poverty and takes the economy towards the road to inclusive growth. This paper examines their potential to contribute to more sustained and broadly based economic growth of Pakistan. Inclusive growth is measured by calculating the growth rate of human development index (HDI) based on UNDP’s (2011). Empirical findings of this study suggest that human and physical infrastructure positively and significantly affects inclusive growth. Thus, investment in human and physical infrastructure needs to be planned to support key growth corridors that foster economic advancements and help the masses to contribute to economic growth and benefit from it as well.