There’s no study of economics in which infrastructure is not mentioned. In fact, the very concept of infrastructure is, you could say, at the center of economic development. If you look closely, countries who have developed and have the most stable economies have invested heavily in infrastructure.
Let’s take a look at how important the infrastructure is to both developed and developing countries. What role does it play? And how does it contribute to the economy?
Infrastructure Brings the Market Closer to the Producers
Let’s take the agricultural sector for example. One of the difficulties the sector has to deal with is transporting their produce from the farm to the city.
The difficulties in transporting the goods to the city means that farmers would have to rely on third parties to bring their crops over to the market. This means that middlemen will have to invest money in fuel and equipment to transport the goods to the city where they will be sold.
Ultimately, this means that prices will remain high for agricultural products because of the difficulty in transporting the goods to the market, caused in turn by a lack of proper service roads and public transport that can help farmers deliver their goods themselves.
With the proper infrastructure and delivery system in place, however, it would be easier for the producers to find their way to the market and thus bring down the prices of the goods. This would in turn spur consumer spending, which can contribute greatly to the economy.
Infrastructure Can Make Any Local Economy Self Sustaining
It is without doubt that infrastructure can make any locale attractive to investors. The industrial sector, for instance, requires that a city or even a municipality has a properly planned and implemented infrastructural project.
This is because industries rely heavily on logistics. Without the infrastructure in place needed to accommodate the big trucks as well as ships to bring about the supplies and equipment these industries need, a city cannot support an otherwise significant growth in its economy that can be brought about the industrial investors.
Infrastructure Can Support Tourism
With your infrastructure in place, transportation from one place to another becomes smoother and more comfortable. This can greatly benefit tourists, and it’s a fact that tourism has and will always have the potential to contribute significantly to any place’s economy.
With tourism, a lot of local businesses have a lot to gain. Tourism can benefit the food sector, the hospitality industry and even the local malls. All of this is only possible with infrastructure in place at any given locale in the whole world.
Being one of the most thriving economies in Southeast Asia, it’s only natural that the Kingdom of Thailand sets an example in investing significantly in the national infrastructure. It’s no wonder that businesses are attracted to the Kingdom – it’s a rapidly developing economy with lots of opportunities to offer.
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