Enhancing regional well-being: An assessment of how infrastructure investments affect gross territorial product

Abstract

The role of infrastructure in promoting regional well-being has gained significant attention. Infrastructure is critical in integrating the regional economy, multiplying economic development, and improving quality of life. Effective decision-making is crucial to maximize the return on these capital investments. This study assesses infrastructure investments’ short-term and long-term impacts. Short-term efficiency is evaluated through the multiplier effect on other sectors, while long-term efficiency focuses on the influence on economic growth. A polynomial model is constructed using regression analysis based on investments in highway construction projects and the corresponding dynamics of gross territorial product in surrounding areas. This model explains the nature of the multiplier impact of transport infrastructure investments. This study significantly contributes to understanding how infrastructure investments can be strategically targeted to enhance economic growth and regional well-being, providing valuable insights for researchers, policymakers, and professionals in economics, urban planning, and infrastructure development.