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Should Infrastructure Investors Care About Human Capital?

Author

Listed:
  • Charles Kenny

    (Center for Global Development)

  • George Yang

    (Center for Global Development)

Abstract

There is considerable interest in increasing private participation in infrastructure to meet the twin goals of climate mitigation and development in low- and middle-income countries. At the same time, this infrastructure needs to make returns in order to be financially sustainable. This paper reviews evidence on the economics of infrastructure investment and the role of human capital and uses two approaches to provide additional evidence on the link between human capital and infrastructure returns: (i) using estimated returns to individual World Bank infrastructure projects and their relationship to country levels of human capital and (ii) broader approaches linking the macroeconomic impact of infrastructure investment in the presence of varying human capital stocks.

Suggested Citation

  • Charles Kenny & George Yang, 2022. "Should Infrastructure Investors Care About Human Capital?," Working Papers 624, Center for Global Development.
  • Handle: RePEc:cgd:wpaper:624
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    More about this item

    Keywords

    human capital; infrastructure;

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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