Infrastructure investment: links to growth and the role of public policies

Economics department working paper No. 686
Investment in network infrastructure – the energy, water, transport and telecommunication networks – which performs a vital role for the functioning of the economy, can contribute to raising growth and social welfare. This paper identifies the policy framework that promotes investment that is conducive to growth and ensures the appropriate use of infrastructure. Central aspects of this framework are identified as a robust decision making process, improving the selection of investment projects, the introduction of competitive pressures through the reduction of barriers to entry and vertical separation when this is appropriate. In addition, efficient investment can be promoted by the combination of regulator independence and the application of incentive regulation.

Source: OECD ECO/WKP(2009)27
Please contact the library for a copy of this paper. 13 Mar 2009 version updated and replaced 24 Mar 2009