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CHAPTER II

METHODS AND PROCEDURES


In this chapter, the researchers presented the methodology used for the study. Included in
this chapter are the research design, instruments used, procedures, data gathering, and the
analysis of data needed in the study.

Research Design
The primary purpose of research design is to provide for the collection of relevant
information with just using minimal exertion of effort, time and money (Catherin, R. et, al 2000).
Qualitative research design, specifically causal-comparative design, was used to
determine the effects of infrastructures to the economic development of a country. The said study
mainly depends on the factor of comparison. The causal-comparative research method was used
by the researchers to conclude the cause-effect equation between the two variables: impacts of
high infrastructure on economic status of a country on the other hand, impacts of low
infrastructure on economic status of a country or the correlation between infrastructure and
economic development. Using the available gathered facts and information, the researchers may
analyze them to make critical evaluation of the role of infrastructure to the economy of a
country.
Additionally, this research also follows a secondary research design, whereas there is a
systematic approach of investigation using existing data. It involves synthesizing existing data
that can be sourced from the internet, peer-reviewed journals, textbooks, government archives,
and libraries (Formplus, n.d.). Further, the researchers shall collate, organize, and analyze data
gathered in order to arrive at a valid conclusion.
Instrument
The researchers used content analysis “to determine the presence of certain words,
themes, or concepts within some given qualitative data.” (Content Analysis Method and
Examples | Columbia Public Health, 2020) This research instrument was employed to examine
data required in the study.
Procedures
This study was conducted among underdeveloped, developing, and developed countries.
The researchers selected at least two (2) countries of each to perform the evaluation. The said
evaluation was performed using the available sources of information such as articles, journals,
and theses from the internet.
Data Gathering
The researchers followed a secondary data collection approach in data gathering.
Whereas, it involves gathering of second-hand data from existing sources, found in the internet,
libraries, archives, schools and organizational reports. In this research, the researchers made use
of online data - data that is gathered via the internet.
Data Analysis
The Six Phases of Thematic Analysis (Braun & Clarke, 2006) was used by the
researchers for the analysis of data. The researchers read the transcript numerous times for
familiarization of the acquired data. Initial codes were then made based from the emerging
concepts from the data. The researches then searched for themes suitable for every statement and
reviewed each of them. The resulting data with similar themes was then organized and recorded.
CHAPTER III
RESULTS
This chapter includes the results based on the data gathered. The results were recorded
according to the statements of the different authors whose respective studies are related to the
present study of the researchers.
Positive Effects of Infrastructure on the Economic Development of a Country
Indicated in Table 1 are the positive effects of infrastructure on the economic development of a
country.
Themes Statements
Public infrastructure is a valuable resource to
both consumers and businesses alike. It
improves the ability to produce and to
consume goods and services more efficiently.
(Stupak, 2018)

Building of rural roads will benefit agriculture


as the farmers able to sell as well as they can
be able to get inputs such as fertilizers,
pesticides and many more at relatively
cheaper prices as their transport costs decline
Improves Production of Goods and
due to improve transportation. The economy
Services
needs reliable infrastructure to connect supply
chains and efficiently move services and
goods. (Puentes, 2015)

Results of the study of Ismail and Mahyideen


(2015) confirms that having quality
infrastructure benefits more in producing
productive and efficient services, thus has
greater impacts on sustainability in economic
growth.

Growth is positively affected by the stock of


infrastructure assets and income inequality
declines with higher infrastructure quality and
quantity. It depicts that infrastructure
Avoids the Chronic Widespread of Poverty development can be highly effective to
combat poverty leading to a well-maintained
as well as sustained economic growth with
also having an increase of employment.
(Starkey and Hine, 2014)

Decreases the Rate of Unemployed Citizens Having a well-maintained infrastructure


enables trade, powers, businesses and creates
opportunities for struggling country. Offering
employment opportunities from engineers,
architects, truck drivers, construction laborers
and meter readers. (Donald. 2005)

Infrastructure investments directly affect


economic development. Whereas, an
increasing capacity for the production of
goods, not limited to plant and machinery,
roads, railways, power lines, water pipes,
schools, hospitals, houses and consumer
goods, could help build a country’s
productive potential and raise its per capita
income. Thus, resulting in increased
productivity and higher living standards
(Srinivasu & Rao, 2013).

More specifically, according to Srinivasu and


Rao (2013), investment in infrastructures
contribute to economic growth by:
- Reducing transaction costs and facilitating
Strengthens Economy through Good trade flows within and across borders;
Infrastructure Investment - Enabling economic actors individuals, firms,
governments to respond to new types of
demand in different places;
- Lowering the costs of inputs for
entrepreneurs, or making existing businesses
more profitable;
- Creating employment, including in public
works (both as social protection and as a
counter-cyclical policy in times of recession);
- Enhancing human capital, for example by
improving access to schools and health
centers;
- Better health and reduced vulnerability of
the poor.;
and
- Improving environmental conditions, which
link to improved livelihood

Increases Trade Flows As stated by Stupak (2018) in his research


report entitled, "Economic Impact of
Infrastructure Investment", public
infrastructure is a valuable resource to both
consumers and businesses alike, improving
their ability to produce and to consume goods
and services more efficiently.

The ability for businesses to produce goods


and services more efficiently is a crucial
determinant of economic growth, and
increased infrastructure investment—if well
targeted and depending on the degree of
crowding out—likely contributes to increased
productivity over time, leading to higher GDP
over the long term. (Stupak, 2018)

According to the study of Ismail and


Mahyideen (2015) improvement of all
infrastructures, hard and soft infrastructure
sectors as well as transportation
infrastructures, must be prioritized for the
reason that this improvement can increase
trade flows.Trade has a massive and positive
impact on a country’s economic growth and
to have the ability to achieve economic
development, one should be open to
international trade. Infrastructures also have a
vital role in facilitating trade.

Srinivasu and Rao (2013), states that


infrastructures affect economic growth in two
distinct ways: it increases output and
increases human capital returns. First, it
increases output by reducing the cost of
intermediate goods. Meaning, the more
developed the infrastructures are, the lesser it
Improves Quality of Life, Standard of Living costs for the production of goods, hence more
and Economy production. In addition, it creates higher
demands for production thereby increasing
economic activities. Lastly, higher human
capital returns, because of greater
accessibility of the people to infrastructural
facilities as well as efficient public services
essential to health and productivity.

Improves Economy in Asian Countries In connection, the study of Srinivasu & Rao
(2013) states that huge investments in
infrastructures resulted in rapid improvement
of macroeconomic situations, investment,
exports and employment, in the 1980s-1990s,
in China, East, and Southeast Asian
Countries.

Identifying the importance of air transport and


road transport infrastructures, facilities in
agricultural and manufacturing is significant
for an economy’s growth. A quality of
infrastructure is just as significant as its
quantity. (Ismail and Mahyideen, 2015)

As stated by World bank (2004),


infrastructures influence the development of a
country’s economy through its impacts, not
only on economic growth, but as well as
poverty alleviation, and the environment.
Studies have shown that those economies that
provide competent infrastructure services
Increases Quality Infrastructure surpassed those economies that provide less
adequate infrastructure services.

Canning (1998) provided a datasheet that


showed the quantity of infrastructures
constructed in 152 economies from 1950 to
1995. Such infrastructure included paved
roads, rail lines, and even telephone lines.
They related the number of infrastructures
constructed to the growth of the economy and
trade and it was revealed that economies that
provided telephone lines and paved roads had
a massive growth throughout the years, while
other economies that lack the aforementioned
did not.

The researchers identified the eight (8) themes that comprises the positive effects of
infrastructures on the economic development of a country; this includes the following:
(a) Improves production of goods and services;
(b) Avoids the chronic widespread of poverty;
(c) Decreases the rate of unemployed citizens;
(d) Strengthens economy through good infrastructure investment;
(e) Increases trade flows;
(f) Improves quality of life, standard of living and economy;
(g) Improves economy in Asian countries;
(h) Increases quality infrastructure; and
Negative Effects of Infrastructure on the Economic Development of a Country
Indicated in Table 2 are the negative effects of infrastructure on the economic development of a
country.
Themes Statements
Haiti is known for its poor infrastructures.
Damage to infrastructures in the 2010 Haiti
earthquake are purely visible. These
infrastructures are poorly and unevenly
maintained. Having this kind of infrastructure
only depicts how low or slow the economic
growth as well as development of a certain
country as Haiti.

Additionally, the local markets to sales of


Haiti’s products also limit its uses due to the
poor roads access. These events may lead to
Slows the Development of Economic
poor economic growth of a country. Like for
Growth
an example critical cost factor in determining
the price of a service. Considering the time
of how long the products or services to
transport from one area to another and the
means of how it will be transported, it might
be a train, truck, rail or plane. (Donald, 2005)

Results of the study of Ismail and Mahyideen


(2015) confirms that any poorly performing
infrastructure may create obstacles for
economies to meet their full growth potential

Declines the Economy due to Poor The study Calderon, Odarawa, and Serven
Infrastructure (2008) stated that Sub-Saharan Africa was
able to develop infrastructures based on their
quantity, in fact, they were able to produce
more infrastructures than Middle East, North
Africa, and Western Europe. Despite being
able to produce more infrastructures than
other developing economies, Sub-Saharan
Africa failed to establish infrastructures of
good quality

It was stated that the economy declined due to


poor infrastructure facilities and services.The
significance of infrastructures in a country’s
economy does not only revolve around
international trading. (Calderon, Odarawa,
and Serven, 2008)

The researchers identified the two (2) themes that comprises the negative of infrastructure on
the economic development of a country; this includes the following:
(a) Slows the development of economic growth; and
(b) Declines the economy due to poor infrastructure;
ABSTRACT
The present study used qualitative research using casual-comparative design and
secondary research design. To identify the effects of infrastructure on the economic development
of a country, secondary data collection from existing articles, journals, and theses online that
were related to the study was acquired and were subjected for content analysis. Based on the
results, the researchers found that infrastructure Improves Production of Goods and Services,
Avoids the Chronic Widespread of Poverty, Decreases the Rate of Unemployed Citizens,
Strengthens Economy through Good Infrastructure Investment, Increases Trade Flows,
Improves Quality of Life, Standard of Living, and Economy, Improves Economy in Asian
Countries and Increases Quality Infrastructure and these were deemed as its positive effects on
the economic development of a country. However, infrastructure was also viewed to negatively
affect the development of a country’s economy because it Slows the Development of Economic
Growth and Declines the Economy Due to Poor Infrastructure. Conclusively, this study
presented that the state of infrastructure, with interplaying factors of both its quality and quantity,
is where the country’s economic development seems to be dependent – resulting to the
economy’s relapse or progress.

.
CHAPTER V
SUMMARY AND CONCLUSIONS
The present study was made to portray the impactful role of infrastructures to the economic
development of a country. With the use of both casual-comparative design and secondary
research design under qualitative research, the researchers employed secondary data collection
from previous articles, journals, and theses online that were related to the study. The data was
then used for content analysis to examine data required in the study. Thematic Analysis was used
to analyze further the data.
[RESULTS AND DISCUSSION SUMMARIZED-CHAPTER 3 AND 4]

References:

Content Analysis Method and Examples | Columbia Public Health. (2020). Columbia.Edu.

https://www.publichealth.columbia.edu/research/population-health-methods/content-

analysis
Appendix A
DATA ANALYSIS
DATA MATRIX
No. Statement Initial Code Theme
Haiti is known for its poor
infrastructures. Damage to
infrastructures in the 2010 Haiti
earthquake are purely visible. These
infrastructures are poorly and unevenly Negative – Slows the development
1
maintained. Having this kind of Underdeveloped of economic growth
infrastructure only depicts how low or
slow the economic growth as well as
development of a certain country as
Haiti.
Public infrastructure is a valuable
resource to both consumers and
businesses alike. It improves the ability
Positive – Improves production of
2 to produce and to consume goods and
Developed goods and services
services more efficiently. (Stupak,
2018)

Additionally, the local markets to sales


of Haiti’s products also limit its uses
due to the poor roads access. These
events may lead to poor economic
growth of a country. Like for an
example critical cost factor in Negative – Slows the development
3
determining the price of a service. Underdeveloped of economic growth
Considering the time of how long the
products or services to transport from
one area to another and the means of
how it will be transported, it might be a
train, truck, rail or plane.
Building of rural roads will benefit
agriculture as the farmers able to sell as
well as they can be able to get inputs
Positive –
such as fertilizers, pesticides and many
The author relates
more at relatively cheaper prices as
this effect to a Improves production of
4 their transport costs decline due to
developed country, goods and services
improve transportation. The economy
Brazil and US, in
needs reliable infrastructure to connect
his study.
supply chains and efficiently move
services and goods. (Puentes, 2015)
Growth is positively affected by the
stock of infrastructure assets and
income inequality declines with higher
Positive –
infrastructure quality and quantity. It
The authors relate
depicts that infrastructure development
this effect to a Avoids the chronic
5 can be highly effective to combat
developing widespread of poverty.
poverty leading to a well-maintained as
country, Angola,
well as sustained economic growth
in their study.
with also having an increase of
employment. (Starkey and Hine, 2014)

Having a well-maintained
Positive – The
infrastructure enables trade, powers,
author relate this
businesses and creates opportunities for
effect to a Decreases the rate of
struggling country. Offering
6 developing unemployed citizens.
employment opportunities from
country, Angola,
engineers, architects, truck drivers,
in his study.
construction laborers and meter
readers. (Donald, 2005)
Infrastructure investments directly
affect economic development.
Whereas, an increasing capacity for the
production of goods, not limited to Positive –
plant and machinery, roads, railways, The authors relate
Strengthens economy
power lines, water pipes, schools, this effect to a
through good
7 hospitals, houses and consumer goods, developed
infrastructure
could help build a country’s productive countries, Brazil
investment
potential and raise its per capita and US, in their
income. Thus, resulting in increased study.
productivity and higher living
standards (Srinivasu & Rao, 2013).

Positive –
As stated by Stupak (2018) in his
The author relates
research report entitled, "Economic
the impact of
Impact of
Infrastructure
Infrastructure Investment", public
Investment for the
8 infrastructure is a valuable resource to Increases trade flows
development of
both consumers and businesses alike,
country’s economy
improving their ability to produce and
in terms of
to consume goods and services more
producing and
efficiently.
consuming goods.
9 The ability for businesses to produce Positive – Increases trade flows
goods and services more efficiently is a The author relates
crucial determinant of economic this theory to
growth, and increased infrastructure economies of all
investment—if well targeted and
depending on the degree of crowding
out—likely contributes to increased
productivity over time, leading to nations.
higher GDP over the long term.
(Stupak, 2018)

More specifically, according to


Srinivasu and Rao (2013), investment
in infrastructures contribute to
economic growth by:
- Reducing transaction costs and
facilitating trade flows within and
across borders;
- Enabling economic actors individuals,
firms, governments to respond to new
types of demand in different places;
Positive – The
- Lowering the costs of inputs for
author relates this Strengthens economy
entrepreneurs, or making existing
theory to the through good
10 businesses more profitable;
development of infrastructure
- Creating employment, including in
economies of all investment
public works (both as social protection
nations
and as a counter-cyclical policy in
times of recession);
- Enhancing human capital, for
example by improving access to
schools and health centers;
- Better health and reduced
vulnerability of the poor.;
and
- Improving environmental conditions,
which link to improved livelihood
The study Calderon, Odarawa, and
Serven (2008) stated that Sub-Saharan
Africa was able to develop
infrastructures based on their quantity,
in fact, they were able to produce more
Declines the economy
infrastructures than Middle East, North Negative –
11 due to poor
Africa, and Western Europe. Despite Underdeveloped
infrastructure
being able to produce more
infrastructures than other developing
economies, Sub-Saharan Africa failed
to establish infrastructures of good
quality
12 It was stated that the economy declined Negative – Declines the economy
due to poor infrastructure facilities and Underdeveloped due to poor
services.The significance of
infrastructures in a country’s economy
does not only revolve around infrastructure
international trading. (Calderon,
Odarawa, and Serven, 2008)
In underdeveloped regions such as the
Sub-Saharan Africa, an adequate Positive – The
supply of infrastructure services is very author relates this
necessary as a key tool in the theory to Increases quality
13
development of their economy which underdeveloped infrastructure.
has been stagnant for so many years. regions [Sub-
(Calderon, Odarawa, and Serven, 2008) Saharan Africa]

According to the study of Ismail and


Mahyideen (2015) improvement of all
infrastructures, hard and soft
infrastructure sectors as well as
transportation infrastructures, must be
prioritized for the reason that this
improvement can increase trade Positive –
14 Increases trade flows.
flows.Trade has a massive and positive Developed
impact on a country’s economic growth
and to have the ability to achieve
economic development, one should be
open to international trade.
Infrastructures also have a vital role in
facilitating trade.
Identifying the importance of air
Positive – The
transport and road transport
authors relate this
infrastructures, facilities in agricultural
statement to the Increases quality
15 and manufacturing is significant for an
infrastructures of infrastructure
economy’s growth. A quality of
Sub-Saharan
infrastructure is just as significant as its
Africa
quantity. (Ismail and Mahyideen, 2015)
Results of the study of Ismail and
Mahyideen (2015) confirms that any
Negative and
poorly performing infrastructure may
Positive- The Slows the Development
create obstacles for economies to meet
author draws a of Economic Growth
their full growth potential and having
16 distinction and
quality infrastructure benefits more in
between the effects Improves production of
producing productive and efficient
of poor and quality goods and services
services, thus has greater impacts on
infrastructures
sustainability in economic growth.

17 As stated by World bank (2004), Positive – Increases quality


infrastructures influence the Worldbank relates infrastructure.
development of a country’s economy
through its impacts, not only on
economic growth, but as well as
poverty alleviation, and the
the statement to
environment. Studies have shown that
economies of all
those economies that provide
nations
competent infrastructure services
surpassed those economies that provide
less adequate infrastructure services.

Canning (1998) provided a datasheet


that showed the quantity of
infrastructures constructed in 152
economies from 1950 to 1995. Such
infrastructure included paved roads, rail
lines, and even telephone lines. They
related the number of infrastructures
Positive – Increases quality
18 constructed to the growth of the
Developed infrastructures
economy and trade and it was revealed
that economies that provided telephone
lines and paved roads had a massive
growth throughout the years, while
other economies that lack the
aforementioned did not.

Srinivasu and Rao (2013), states that


infrastructures affect economic growth
in two distinct ways: it increases output
and increases human capital returns.
First, it increases output by reducing
the cost of intermediate goods.
Meaning, the more developed the
Positive – The
infrastructures are, the lesser it costs for
author relates this Improves quality of life,
the production of goods, hence more
19 theory to standard of living and
production. In addition, it creates
economies of all economy
higher demands for production thereby
nations
increasing economic activities. Lastly,
higher human capital returns, because
of greater accessibility of the people to
infrastructural facilities as well as
efficient public services essential to
health and productivity.

20 In connection, the study of Srinivasu & Positive – Improves economy in


Rao (2013) states that huge investments Developed Asian Countries
in infrastructures resulted in rapid
improvement of macroeconomic
situations, investment, exports and
employment, in the 1980s-1990s, in
China, East, and Southeast Asian
Countries.

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