Economics, 3rd Edition

Infrastructure Investment 

Governments will often take the lead in providing funds for infrastructure pro-

jects which have been identified as having long-term beneficial effects on the economy and will help to 

improve capacity. The sort of projects that governments support are invariably identified as being important 

in helping businesses to be more efficient, cutting costs and waste and improving supply chains. Improve-

ments to roads, rail, ports and airports help firms to distribute goods more efficiently; improvements to 

communications networks help to make service industries more efficient and developments to energy 

and water supplies through the development of new power stations or improvements to supply networks 

can also help firms secure their energy needs and can help reduce cost if these networks  operate more 

efficiently.