Question

How does infrastructure impact productivity and induce investment?

Answer 1

Impact on Productivity:

Infrastructure plays a major role in raising the productivity of the primary, secondary and tertiary sector.

The productivity of the primary sector has increased due to the provision of better irrigation facilities.

The productivity of the secondary sector has increased because of development in the energy sector and the tertiary sector has benefitted by changes in transportation and communication sector.

Induces Investment:

A well-developed infrastructure attracts foreign investors. Thus, infrastructure induces investment and increases profitability.