Infrastructure includes schools, roads, railroads, hospitals, retail outlets, recreational and cultural possibilities, social services, and the full network of support services and facilities in a city or region.
Infrastructure projects typically take months to years to complete, implying that the jobs will be retained. These workers then spend their earnings locally, stimulating the economy. Furthermore, once the projects are completed, inhabitants will be able to use transportation and utilities more effectively, increasing labor productivity. Public infrastructure investment increases the productivity of private capital and labor, resulting in higher output; however, this positive effect can be cancelled out if the investment is financed with further government borrowing. Infrastructure has an impact on growth through a variety of supply and demand-side routes. Investments in energy, telecommunications, and transportation networks have a direct impact on growth because all types of infrastructure are required in the creation of products and services.
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