Economic infrastructure is a set of basic services that contain the basic principles of economic development of a country, region or city. It is to take into account the flow of information, energy, and matter to shape costs. Economic infrastructure is the following:
- subservient (provides services),
- long-lived (long service life),
- immobilized (devices and instruments cannot be used).
Economic infrastructure has a very large impact on economic potential. It provides him with resources that affect his return. The economic potential consists of occupational activity of the inhabitants and their income, labor market, type of entrepreneurship, inflow of foreign capital, as well as the condition of the natural environment.
Features of economic infrastructure
Economic infrastructure has the following features:
- Services - its offer is to meet the demand for services in all consumption and production zones.
- Transfer - enables the transport of people, goods and energy in space by creating favorable conditions for this.
- Integrative - creates social, information and economic ties in given countries and regions.
- Informative - provides information about the current state of the economy, is a factor in creating economic potential.
Types of economic infrastructure
Economic infrastructure can be divided into individual types:
- Transport infrastructure - to ensure the fast and efficient transport of material goods and the transport of persons and animals. It consists of roads (roads, motorways), rail and inland waterways (seaports and airports) networks. This infrastructure is considered in three aspects: technical, organizational and economic.
- Financial infrastructure - it consists of financial markets and financial services that support economic processes. A special mention should be made of banks that deal with the storage of funds, payments, transfers, raise capital (deposits, bank accounts) and create new money, on which they earn (loans).
- Social infrastructure - these are devices and institutions that meet social and social needs. These include, for example, hospitals, sanatoriums, schools, kindergartens. Social infrastructure is very important in the development of education in a given region. We can distinguish here: health infrastructure (hospitals, etc.), educational infrastructure (schools, etc.) and tourist infrastructure (museums).
- Technical infrastructure - these are devices for the transmission of energy, water, heat, telecommunications, as well as for the discharge of sewage and pollution.
- Security infrastructure - these are systems and institutions that help a given region in the event of unpredictable fortuitous events, such as natural disasters (floods, earthquakes, tsunamis).
- Henckel T., McKibbin W.J. (2017), The Economics of Infrastructure in a Globalized World: Issues, Lessons and Future Challenges. Journal of Infrastructure, Policy and Development, Volume 1 Issue 2.
- Treasury H.M. (2013), Planning Economic Infrastructure. National Audit Office.
- Younis F. (2014), Significance of Infrastructure Investment for Economic Growth. Munich Personal RePEc Archive, MPRA Paper No. 72659
Author: Julianna Lekarczyk