The Impact of Sufficient Infrastructure Investment on Regional Macro-economy – Taking California High-Speed Rail Project vs LaGuardia Airport Reconstruction Project as Examples

Authors

  • Wenyuan Wang

DOI:

https://doi.org/10.54097/a78q6g91

Keywords:

Infrastructure investment; macroeconomic growth; regional competitiveness; California High-Speed Rail; LaGuardia Airport.

Abstract

This paper employs case study methodologies to scrutinize the macroeconomic ramifications of the California High-Speed Railway project and the LaGuardia Airport reconstruction project on the regional economy and explore the multidimensional impact of infrastructure initiatives on their regional economies. It delves into the multifaceted impacts of infrastructure investments in fostering regional economic expansion, augmenting employment opportunities, and bolstering regional competitiveness. The research approach integrates qualitative analysis, invoking pivotal economic theories to substantiate the comprehensive assessment of these two monumental projects' effects on the regional economy, encompassing social responsibility, sustainability, and governmental governance. The California High-Speed Railway Project facilitates the circulation of economic resources within California and the connectivity and commercial development of small and medium-sized cities by building a convenient high-speed transportation network that reduces dependence on car travel. Conversely, the LaGuardia Airport Redevelopment Project strengthens New York's function as a global transportation hub and an important port on the East Coast by upgrading the airport's aviation infrastructure and logistics clearance efficiency. Studies have shown that these infrastructure investment projects create many jobs, improve the labor market's employment flexibility and social inclusiveness, and promote sustainable development that reduces costs and increases efficiency through green building and energy-saving and emission-reduction technologies. This paper comprehensively verifies the endogenous growth theory and regional competition theory as a strategy for future investment in the construction of metropolitan infrastructure. It provides empirical support and scientific optimization suggestions for policy.

Downloads

Download data is not yet available.

References

[1] Romer P M. Increasing returns and long-run growth. Journal of Political Economy, 1986, 94(5): 1002-1037. DOI: https://doi.org/10.1086/261420

[2] Lucas R E. On the mechanics of economic development. Journal of Monetary Economics, 1988, 22(1): 3-42. DOI: https://doi.org/10.1016/0304-3932(88)90168-7

[3] Munnell A H. Why has productivity growth declined? Productivity and public investment. New England Economic Review, 1990, 3-22.

[4] Landis J D. The Megaproject Challenge: Politics and Policy for Large Infrastructure Projects. Oxford University Press. 2020.

[5] California High-Speed Rail Authority. Annual report. 2023, Retrieved from https://hsr.ca.gov/programs/cultural-resources/agreement-documents-annual-reports/

[6] California Legislative Analyst's Office. High-Speed Rail 2023 project update report. 2023, Retrieved from https://lao.ca.gov/Publications/Detail/4758

[7] U.S. Bureau of Labor Statistics. Job openings and labor turnover – California. 2024, Retrieved from https://www.bls.gov/regions/west/news-release/jobopeningslaborturnover_california.htm

[8] Fresno Economic Development Corporation. Investment and growth report. 2022.

[9] Port Authority of New York and New Jersey. Annual report, Water Conservation Initiatives, and Flight Delay and Congestion Report. 2023, Retrieved from https://www.panynj.gov/

[10] New York State Energy Research and Development Authority. Energy efficiency strategies and sustainability practices. 2023.

[11] California Air Resources Board. Transportation emissions and reduction strategies. 2021.

[12] JLL. Real estate investment analysis: Impact of infrastructure projects on commercial real estate values in New York. 2023.

[13] Pauser, J. Fiscal competition, unemployment, and the provision of productive infrastructure. FinanzArchiv, 2023, 79(3): 208-234. DOI: https://doi.org/10.1628/fa-2023-0009

[14] California State Auditor. High-speed rail project management and cost report. 2022.

Downloads

Published

24-12-2024

How to Cite

Wang, W. (2024). The Impact of Sufficient Infrastructure Investment on Regional Macro-economy – Taking California High-Speed Rail Project vs LaGuardia Airport Reconstruction Project as Examples. Highlights in Business, Economics and Management, 46, 251-257. https://doi.org/10.54097/a78q6g91