Abstract
This study investigates the economic effects of infrastructure investment on regional development within ASEAN member states. It has focused on how infrastructure investment affects GDP growth, regional inequality, and sustainable development. The study has considered panel data collected over almost 20 years from six ASEAN nations. The study has shown that infrastructure spending has a major impact on economic growth. The research findings indicate that although infrastructure expenditures exhibit a positive correlation with GDP growth, their effects are contingent upon regional differences and sustainability issues. More specifically, the analysis has demonstrated that gains in accessibility to basic services, like clean cooking fuels, do not always result in immediate economic gains and may instead be a sign of underlying systemic problems. Furthermore, there is a need for efficient implementation of sustainable practices because the sustainability of infrastructure projects, as determined by environmental policy scores, has not shown a substantial direct impact on GDP growth.
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The primary driver of international commercial integration is high-quality infrastructure. Effective infrastructure networks facilitate involvement in international production networks and strengthen national ties to global supply chains. In addition, reducing marginal costs increases economic growth and reduces transaction costs (Vidya and Taghizadeh-Hesari, 2021). Investment in infrastructure, especially in developing countries, is a key driver of regional development and economic growth. The world economy has experienced tremendous economic growth due to increased investment in infrastructure, especially due to capital accumulation There is no economy in the world that can grow without continuous growth in infrastructure investment because infrastructure growth is such an important part of economic growth.
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