Infrastructure investments, technologies and jobs in Asia

Abstract

ABSTRACT Development economists have considered physical infrastructure to be a precondition for industrialization and economic development. Infrastructure investments play a particularly important role in expanding overall employment opportunities either directly by absorbing workers or indirectly by crowding in private investments, technology adoption, and production activities through which new jobs are created. As investments in infrastructure increasingly address the integration of technology and sustainability principles, the nature of jobs and skill requirements are also changing. On one hand, augmented public funding can favor infrastructure investments that have higher employment elasticity to ensure adequate job creation. On the other hand, the advent of the Fourth Industrial Revolution calls for a more skill-intensive workforce. Using findings from existing studies on infrastructure and data from Asian Development Bank, this paper discusses changing infrastructure investments in a rapidly changing technological environment and how developing countries can reap employment creation benefits through innovations.