Impact of Infrastructure on Trade and Economic Growth

This study examines the impact of infrastructure on trade and economic growth, with a focus on India. It explores the relationship between infrastructure development, trade policies, and economic growth. The study aims to analyze the push and pull strategies for government institutions and evaluate the benefits of infrastructure development in economic growth.

Impact of infrastructure on
trade and economic growth
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Table of Contents
CHAPTER 1 INTRODUCTION.....................................................................................................3
CHAPTER 2 LIITERATURE REVIEW.........................................................................................7
CHAPTER 3 RESEARCH METHODOLOGY............................................................................16
CHAPTER 4 DATA ANALYSIS.................................................................................................23
CHAPTER 5 DISCUSSION..........................................................................................................33
CHAPTER 6 CONCLUSION AND RECOMMENDATIONS....................................................36
REFERENCES..............................................................................................................................40
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CHAPTER 1 INTRODUCTION
Background
In present times, there has been high decline in global economy due to Covid 19. the
pandemic has highly impacted on economic growth of both developed and developing nation.
along with it, there is decline in GDP of countries as well. In survey done by various rating
agency like Moddy’s, fitch, etc. it is estimated that there will be decline of 2-5% in global
economy. moreover, there will be negative impact on trade as well between countries. It is found
that pandemic has impacted Europe and US to a great extent as compared to other nations.
Therefore, it is important for all countries to maintain economic growth. Basically, there are
several ways to boost economy such as bringing in financial policy, trade with other nation, etc.
there is a significant role of infrastructure in economic growth. It reflects entire road, rail
network, buildings, urban and rural development etc. (Maparu and Mazumder, 2017). With
improvement in infrastructure it becomes easy to develop rural areas. Also, it helps in
strengthening network of transport and connecting rural and urban areas. Every nation focuses on
improving its infrastructure so that their economic growth is increased. Moreover, they do trade
with other countries in terms of import and export. Thus, if trade increases it leads to economic
growth. However, when trade increases it leads to infrastructure development. this is because it
allows companies to invest in within nation. basically, large and SME are back bone of economic
growth. The products manufactured are exported to other countries and trade is done. it has been
analysed that every country trade and infrastructure are interrelated to one another. the
infrastructure plays vital role in promoting trade and economic growth. The nations who are
developed in having strong infra and trade policy due to which they are able to deal with other
countries. also, they export many types of products to other countries. Furthermore, infra helps in
reducing trade costs and rising volume of it. so, with quality infra there is rise in trade. there are
several reforms of trade which is applied. It allows in facilitating trade and removing barriers in
it. There are many categories in infrastructure that are port, physical, road, etc which help in
movement of goods from one place to another.
The government develops several strategies in order to boost economic growth. this is
done to attract foreign direct investment. Furthermore, exports are increased and import is
reduced. This results in increase in trade and reducing foreign exchange deficit. Besides that,
many other measures are taken to ensure economic growth is maintained. India is a developing
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country located in Asia (Agrawal, 2015). The nation is having a potential of high economic
growth. it is because they possess resources and talent as well which can led to attain growth rate
of 9- 10 % in next 1-2 years. there is also a high impact of covid 19 on country. due to it,
economic growth is affected. However, nation highly depends on imports for fulfilling their
needs and resources. besides that, exports is less as compared to imports. alongside, nation
infrastructure and trade needs to be boosted so that economic growth is improved. In addition,
India is having strong international relation with many countries. thus, they can easily grab
opportunity to increase growth. the government can attract FDI from other countries. Also, new
trade policy can be formed and tariffs are changed. It will be useful in boosting growth and
emerging of new opportunity for business to trade with countries in free way. The gravity model
to used to analyze the effect of infrastructure on the volume of trade by its influence on transport
costs. thus, it was found that infra had a vital and positive relationship with volume of trade. As a
result, difference in transport costs among economies may highlight differences in their ability to
compete in international markets (Bajar, and Rajeev, 2016). Furthermore, difference in the
volume and quality of infra may account for differences in transport costs. Hence, better
transport services and infra improve international market access and increase trade. It allows
nation to trade at global level with maximum capacity. there is rise in foreign reserve in nation.
many companies start setting up their unit in country and offering job to people. On contrary if
infra is not good then it impacts on trade and economic growth in negative way. this is because
there is no network of road and rail transport, so business find it tough to transfer products from
one place to another. therefore, business does not prefer to trade with those nation. this results in
affecting on economic growth as well. Similarly, if policy formed in not proper then it act as
barrier in trade.
It has been studied that infrastructure has quite tremendous impact on economic growth.
It has been stated that 1% increase in investment leads to 2- 3 % economic growth. Infrastructure
includes road development There are several direct impacts on trade and economic growth. Due
to the road construction, trade can be largely increased. Products can be transported from even
remote areas through air transport where road and rail connection is difficult. Small scale and
Cottage scale industries can become the part of backbone of economy as the specialized goods
can be exported and revenue can be increased and foreign exchange deficit can be reduced.
Research aims and objective
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Aim –
To analyse impact of infrastructure on trade and economic growth. A case study on India.
Objectives
 To investigate how infrastructure impacts trade and economic growth.
 to evaluate push and pull strategies for the government institutions.
 to analyse benefit of infrastructure development in economic growth
Research questions
 It is to be identified in the literature how infrastructure impacts trade and economic
growth.
 The research would aim to focus on big push and big pull strategies for the government
institutions.
 The research would help the government institutions to observe the insights of benefits
on infrastructure development
Rationale
In such a difficult time due to pandemic of covid 19 the entire global economy is
adversely affected. It has led to bringing crises in many nations.
The reason for doing this study is that due to covid 19 economic growth of India and
entire world is highly affected. so, with this there is affect on trade as well. However, developed
economies is affected also. the health and other infra of nation is impacted. thus, there is affect
on trade as well. with this research it will be easy to find out impact on infra of trade and
economic growth. Along with it, it is determined that how pull and push strategies affect on trade
and economic growth. Hence, it will be easy to relate those strategies with trade and
infrastructure.
Besides that, purpose of study is to identify that how government institutions gave insight
of benefits on development of infra. Therefore, data and info of it is evaluated and how it related
with trade and economic growth of nation. Furthermore, it is determined that how investment
made by government impact on economy and how it brings in trade.
Significance
There is a great significance of doing this research. this is because it will help in
analysing how trade and infra affect on economic growth. Through it, factors will be identified
which play a vital role in it. Moreover, study will provide in depth data and info about factors,
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role of government, trade policy etc. that impact on trade. In addition, it will explain about two
theories that are pull and push strategies and how it differs from government and economic
growth of nation. Hence, study will provide information about various pull and push strategies
which can be taken by government in order to increase economic growth.
Structure
It shows the entire structure of study along with its different chapters. They are discussed
in a systematic way which makes it simple for user to understand each chapter in a proper
manner. Also, it is easy to evaluate what is included in each chapter.
Chapter 1 Introduction – This is the first chapter which will give an overview of overall
research topic. In that, scholar will describe rationale, aim, objectives, research questions, etc.
that have to be achieved (Khurana and et.al., 2018).
Chapter 2 Literature review- It is the second chapter in which researcher will analyze
secondary data from different research articles, journals, etc. Here, the topic is discussed in depth
regarding what other authors have contributed in past. The secondary data is collected and
analyzed which makes it easy for user to know what subject is all about.
Chapter 3 Research methodology – It will describe about different types of research methods
which will be used or applied by the researcher in project. It will give an overview about how
overall research will be conducted and what methods are used.
Chapter 4 Data analysis – It will show how primary data is collected and interpreted. It gives a
brief analysis of results obtained from data. It will include graphs, tables, charts, etc. along with
its interpretation.
Chapter 5 Discussion and analysis- In this, the results and analysis are discussed which will
show findings of overall research. The researcher will give an in-depth analysis of data and
information interpreted by collecting primary one. This will make it easy for the user to evaluate
overall findings of project.
Chapter 6 Conclusion – It is the last chapter in which conclusion is done. Here, researcher
shows what is concluded after completing the project. This chapter gives an insight that about
findings of data and information.
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CHAPTER 2 LIITERATURE REVIEW
Literature review is referred to as a comprehensive summary of already collected set of
data associated with the specific research topic. The literature review is useful in serving
scholarly articles, books, journals for a particular area of research. The literature review is
prominent because it helps in enumerating, summarizing, describing and also clarifying the
specific research associated with the subject matter. Literature review helps in bridging the gap
and knowledge of the researcher because it helps in providing a foundation of knowledge
associated with the research topic. It is very useful in identifying key areas of prior scholarship in
order to prevent duplication of the data and examining gaps, conflict associated with the previous
studies.
Theme 1 infrastructure impacts trade and economic growth
As said by Bajar, and Rajeev, (2016) a nation economic growth predict its development
status. it means that it is identified whether country is developed, developing or under developed.
It states that whose nation economic growth is high it is considered as developed and who’s in
low is under developed. Thus, for every government it is their top priority to maintain growth so
that they are developed. For that they put huge efforts to ensure that economy is maintained.
Along with it, there is direct relationship of infra and trade on economic growth. This is because
when trade increases it leads to rise in economy but on contrary if trade decreases economic
growth is declined. In similar way, trade results to improvement in infra and increase in
investment in it. thus, there is increase in growth as well. Alongside, trade only raises when there
is strong network of infra within a nation. This is because it is useful in movement of goods and
services from one to another in effective way. The companies are able to invest in those nation
by setting up their industry. it results in providing employment, bringing FDI, technology etc.
According to Haque, (2016) trade does not include investing in businesses in other
countries but it also consists of import and export of goods and services between nations. so,
when export is higher than import it led to rise in economic growth. this is because it raises
foreign exchange reserve. Apart from it, there is decrease in cost of trade. However, it is
evaluated that good and strong infra attract companies to invest in countries. It is because they
bring in new opportunity and development. The government is able to generate revenue from
them by obtaining tax. in addition, more business is brought by them.
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Reddy, and Reddy, (2015) sought to determine the fact that, Low degree of infrastructure
quality and quantity tends to result in trade restrictions and also increase the transportation cost.
Infrastructure times to play one of the key significant role which helps in facilitating trade and
visit Asia which has resulted in reduction in tariff rates. Improvement within the transportation
infrastructure such as road density network, railway network, ports, logistics system, air transport
is very useful in increasing the trade flows. Use of information and communication technology
infrastructure is one of the key significant method which has in enhancing trade and also increase
the number of telephone lines, broadband access, mobile phones, secure internet servers, internet
users have positive trade effects for both importers and exporters within Asia. In the short span
of time, upgrading and building up of Energy and transport networks helps in boosting up the
employment, construction activity which eventually needs to growth within the economy. For the
long span of time, infrastructure investment is very useful in boosting up economic growth by
effectively increasing the potential supply and capacity of the economy. Increase in
infrastructure spending will also result in rise in the gross domestic product of the economy.
Increase in the infrastructure helps in significantly boosting up the economic activity and also
leads to high employment growth. Agrawal, (2015) sought to argue on the fact that,
Infrastructure development is highly crucial for the economic growth because it helps in
elevating poverty from the country and it also helps in increasing the job opportunities for the
people. The adequate infrastructure in the form of railway and road transportation system, power,
airports, ports, etc. helps in increasing the economy. The adequate set of infrastructure and
building is useful for the attainment of better economic growth and development. One of the key
significant reason for poor infrastructure development within the economy is mainly linked with
political influence, Poor accountability, corruption, in a fish and sea of labour force, less political
concern, absence of incentives, et cetera leads to poor infrastructure within the economy. Lack of
infrastructure needs to deficit within the economy and poor standard of living among the
individuals. At present times, worldwide economic growth is declined due to pandemic of covid
19. The poor infrastructure leads to lower employment opportunities and affect the income level
of the people. Poor infrastructure tends to have negative effect on the poverty and affect the
economy adversely.
Maparu and Mazumder, (2017) sought to determine the fact that, Infrastructure helps in
improving the trade because it is useful in the movement of the goods and services from one
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nation to another which helps in reducing the cost associated with the trade and also helps in
improving the outcomes and results. There seems to be significant level of border effects on the
regional price levels which tends to indicate and demonstrate that, there seems to be high degree
of better regional infrastructure which leads to higher operational growth and sustainability.
Improving the infrastructure and building up the telecommunication network is of utmost
accuracy which helps in providing better set of networks and improving the infrastructure of the
country. Bajar, and Rajeev, (2016) argued that, there are various types of infrastructure like
transportation, water energy, public space, health and education, safety and resilience, finance,
etc., helps in boosting up the economy level. Deterioration within the infrastructure tends to have
high degree of public safety issues and also tends to have cascading effect on the nation's
economy. The poor infrastructure negatively affects the productivity of the business, low degree
of employment opportunities, international competitiveness, gross domestic product, personal
income, etc. Lack of infrastructure tends to bring poor standard of living and economic deficit.
The infrastructure damage also leads to high degree of poverty within the economy and it tends
to affect the social as well as the economic sector because of lower infrastructure. Ineffective
poor infrastructure results in not selling of the goods and services to the poor. Moreover,
ineffective transport infrastructure directly leads to higher cost of transportation which also
results in long time of delivery.
Haque, (2016) sought to determine the fact that, improved infrastructure is significant in
providing logistic services which helps in reducing the cost of transportation which leads to
improved international trade and also tends to have effective set of infrastructure services. In the
long run, infrastructure is highly significant because it helps in boosting up the economy because
it leads to increasing growth and also improve the potential supply capacity of the economy.
Improving the transportation facilities is very useful in effectively making the workers more
mobile and effectively improving the labor markets. This way it helps in efficiently increasing
the productivity levels and is useful in improving the flow of the international trade. This
eventually leads to improved set of import and export facilities which helps in improving the
growth of the economy. Geographical and market factors which is useful in determining the cost
associated with the transport. High degree of investment within the infrastructure tends to
influence the overall level of the economy which tends to negatively influence the productivity
slack of the economy. It is highly impossible to effectively and reliably forecast on the various
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set of long term effect in order to improve the overall economic level of the individual.
Infrastructure investment is highly significant because it leads to boosting up the productivity
growth of the economy. Infrastructure improvement also helps in boosting up the economic
activity and also leads to better employment levels. Effectively combining the building energy
efficiency is very useful because it tends to have smarter grid for the carbon mitigation.
However, infrastructure improvement is useful because it tends to have multiplier effect on the
growth and productivity of the economy.
Theme 2 push and pull strategies for the government institutions
Maparu and Mazumder, (2017) sought to determine the fact that, push strategy is one of
the most effective strategy which helps in attempting to effectively improving the outcomes of
the person. Push strategy is effectively used in order to gain high degree of exposure to the
product. Moreover, employment rate is again one of the key performance indicators related with
the economic growth. It has been evaluated that, with the increase in employment the purchasing
power parity also increases. It also leads to tax revenues increase and higher economic growth
with increase in investment and cycle recurrences.
Aditya, Douglass and Bhattacharya, (2017) sought to argue on the fact that, there are
important theories will be part of this research i.e., big push and big pull strategies where in
former one government invests in infrastructure in order to effectively reduce the average cost.
This way it helps companies in generating more revenues and leads to higher economic growth.
The later government wait until average budget of the business sector has raised and then they
invest in infrastructure in order to reduce the average budget and rise the revenues and economic
growth. At the time of infrastructure development, the government tends to hire contractors and
service, which tends to increase employment and also leads to country’s development. Kaur,
Khatua, and Yadav, (2016) sought to determine the fact that, investment from other foreign
companies tend to rise with good infrastructure. However, big economies tends to have finely
built infrastructure and it helps in attracting the companies from across globe which leads to
growth within the economy. Effective communication, feasible transportation modes,
uninterrupted power supply, etc. are some of the key components of good infrastructure which
tends to attract investors worldwide and thus business sector tends to grow inevitably. The
government must mainly focus on effectively improving the areas which is useful in positioning
the economy in order to effectively improve the infrastructure.
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Aditya, Douglass and Bhattacharya, (2017) sought to argue on the fact that, use of
effective distributed model is useful for the infrastructure project. Empowering the state and the
local government is one of the key effective strategy which helps in the attainment of the goals
and objectives by the government institution. Revamping the highway trust is one of the key
prominent strategy which helps the government institution in improving the infrastructure of the
economy. Agrawal, (2015) sought to argue on the fact that, progress within the infrastructure of
the India is one of the most significant phenomena which largely affects the development of the
economy. It is very useful to identify where the government is needed and the areas which needs
adequate support for improvement. Making smart bridges within the country is very useful in
better connectivity and leads to higher sustainable growth and efficiency. Increasing access to the
open areas for rural people helps in facilitating the transportation of goods and it also has a
serving as an interstate bridge for the energy, freight and agricultural industry.
Kaur, Khatua, and Yadav, (2016) sought to determine the fact that, establishment of the
port is considered to be as one of the most significant economic activity which in turn has been
carried out within the coastal area. The more infrastructure, associated services and provisions in
turn are highly required which impose high degree of valuable benefit to the economy. This is
highly beneficial in providing support for carrying out effective set of connection in order to
improve the trade across the country and helps in the high degree of economic development.
India is considered to be as a good rich heritage which trades across the sea. Improvement within
the structure leads to high degree of throughput of the passengers and goods. The efficient
management of the ports tends to lead to high degree of throughput of the goods and also
passengers from across various territories and countries. This way it is useful in providing high
degree of management information which is useful for attaining of better advantages to the
economy. Improvement within the infrastructure eventually leads to increase the employment
opportunities which is beneficial in increasing the development of the economy and various
others services which leads to higher economic growth.
Maparu and Mazumder, (2017) sought to determine the fact that, the government needs
to effectively focus on monitoring the economic growth with the use of fiscal and monetary
policy. This policy is considered to be useful in improving the long term growth which tends to
largely stimulate the economic growth. The government institution must highly focus on
enacting the monetary policy, effectively fixing the exchange rate and also controlling the age
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and price. The government institution complying with the effective economic strategy is
considered to be relatively rapid and new which is useful in developing the key areas of the
economy which needs improvement. The government institution must highly comply with the
infrastructure development strategies which leads to high degree of inclusive growth to the
people. The government must focus on taking measures to develop rural areas, better urban
infrastructure development and alleviation of the poverty. This strategy is highly useful because
it helps in the better attainment of the economic growth and development. The government
institution must focus on providing integrated transport system, air traffic, power, energy,
education sector and telecommunication is considered to be highly beneficial for the inclusive
growth of the economy. Bajar, and Rajeev, (2016) sought to argue on the fact that, the
government institution must effectively focus on improving the infrastructure decision of the
economy by effectively creating an appropriate set of infrastructure strategy for the specific
country. Improving the way the government uses cost benefit analysis which is useful in
developing evidence for the finance option. This is useful in establishing a commission for the
public engagement which mainly includes local communities in various infrastructure project.
Improvement within the infrastructure development is considered to be highly significant
because it helps in improving the economic condition by reducing the poverty rates and
increasing the employment rates within the economy.
Theme 3: Benefit of infrastructure development in economic growth
Khurana and et.al., (2018) sought to determine the fact that, Economic infrastructure is
very useful in ensuring the mobility of labour and capital within the economy. Economic
infrastructure is very useful for the overall growth of the cities and towns. Infrastructure
development leads to growth within the economy that was it helps in generating employment
opportunities which leads to better living standards and higher growth opportunities for the
people within the economy. The infrastructure is useful for higher degree of economic growth
and also has an elevating the poverty within the economy. Adequate form of infrastructure in the
form of effective railway transport system, Road transport, ports, airports, power, etc. in order to
improve the working efficiency of the individual people. Rural poverty is one of the effective
measure which hinders the mobility and development of the infrastructure within the economy.
Lack of infrastructure in turn leads to deficit within the economy and leads to poor selling output
in the market because of ineffective infrastructure facility within the economy.
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Bajar, and Rajeev, (2016) sought to argue on the fact that, Infrastructure development
within the economy is useful for facilitating large scale of production for the key purpose of
smooth functioning within the economy. Infrastructure development within the economy directly
leads to unity of various economic openness and results in better results and outcomes. It is very
useful in creating a time and place utility and is very prominent in the development of industry
and agriculture within the economy. Development within the industrial infrastructure such as
communication, transportation and tele -communication is useful because it helps in breaking
any kind of economic isolation that tends to prevail within the country. Industrial development is
considered to be a great and big source of revenue for the government. The development within
the economic infrastructure is useful because it helps in development within the economic trade.
Yu, (2017) sought to determine the fact that, Economic infrastructure is very useful because it
helps in ensuring mobility of capital and labour within the economy and also helps in ensuring
price stability within the market. It eventually leads to development of the market and helps in
territorial division of labour. Every economy tends to need reliable and sustainable infrastructure
which is useful in connecting supply chains efficiently moving goods and services across various
borders. Infrastructure is useful in connecting household with various set of metropolitan areas in
order to provide and get access to high-quality opportunities linked with Healthcare, employment
and education. Clean public transit and clean energy is very useful in reducing greenhouse and
emission and gases within the economy.
Haque, (2016) sought to determine the fact that, the key important constituents of the
infrastructure mainly includes road transport, railway, communication, power, source of
production, agriculture and irrigation. For example building of the roads within the rural area
will help the farmers and agriculture and also helps in selling their products in town in order to
get remunerative prices. Improve transportation is useful because it helps in declining the
transportation cost and attaining economies of scale. The infrastructure facilities are run or built
by the public sectors and government enterprises. Good quality infrastructure is of utmost
importance for faster and sustainable growth of the economy. The inclusive growth within the
economy because of infrastructure development helps in improving the standard of living of the
people by reduction in income inequalities within the country. There various set of micro small
and medium enterprises which has been dispersed throughout the economy. Tortajada, (2016)
sought to argue on the fact that, the micro small and medium enterprises tends to focus on
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carrying out high degree of production which leads to access to quality and reliable infrastructure
services in order to effectively compete with the large scale enterprises positioned within the
economy. Expansion of various infrastructure facilities associated with rural electrification,
education, road transport is very useful in promoting agricultural growth and help in setting up
with the Agro processing industries. Improve infrastructure will help the farmer in reducing the
input cost and helps in increasing the agriculture production by reducing traders.
Kaur, Khatua, and Yadav, (2016) sought to determine the fact that, lack of adequate
infrastructure results in lack of development within the economy and leads to additional cost in
terms of efforts, time in money for the people who has been accessing to an essential social
services like education, employment and healthcare within the economy. Availability of high-
quality infrastructure facilities is useful in raising productivity levels within the economy and
cutting down cost for the enterprise. The availability of the appropriate set of infrastructure is
useful in expanding trade within the country by improving transport facilities and promoting
foreign trade. This can be done by improving Transport facilities and has in promoting foreign
trade. The improved infrastructure of the economy has in producing goods in relation with the
demand of the people within the country. Effective infrastructure development is useful in
diversifying production by the company by accessing large number of raw materials and inputs
from across the globe.
Maparu and Mazumder, (2017) sought to argue on the fact that, road transport is
considered to be the key infrastructure which is useful in movement of raw material, fuel and
goods. The availability of transport is useful in expanding the market for industrial and
agricultural products which helps the producers to produce goods and services on a large scale
and reaping high degree of benefits in order to attain economies of scale. Railways on the other
hand is also one of the key integral part of the infrastructure development which helps in
efficient working within the economy. Development of the airport infrastructure is useful in
better international connectivity and leads to better interaction with the other part of the nations
to improve the performance and productivity of the economy.
Bajar, and Rajeev, (2016) sought to argue on the fact that, the key relevant benefit
associated with the infrastructure is that it helps in improving the scalability of the service. Better
cost- effectiveness, independence related with the occasion, improved security and lower
redundancy, appropriate security of the data and effective functioning of the economy.
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Infrastructure is useful in effectively encouraging the economic growth and also leads to the
enhancement of the transportation, production and effective communication. Infrastructure
improvement in turn eventually leads to high degree of immediate growth and boosting up the
productivity of the states. Improvement within the key infrastructure in turn tends to result in
providing high quality services and also helps in effectively providing high degree of growth
opportunities within the market. Infrastructure is useful in improving the quality of life and it
also leads to improvement in the future mobility patterns in increase the power of the economy
and attain better results and outcomes. Considering future mobility and providing infrastructure
with effective fundamental facilities is very significant in serving the city, country and various
other areas of the nation. These range of fundamental facilities is useful for improving the
function of the economy. Planning infrastructure is useful in effectively improving the various
other set of future mobility patterns and leads to improved quality of life and effectively reducing
the poverty levels within the economy. Well designed facilities and also effectively maximizing
the key effectiveness of the improvement in the community services is very significant in
enhancing the community cohesion and also improve the wide degree of employment
opportunities and access to better quality services. However, infrastructure improvement leads to
faster growth within the economy and attaining high degree of economies of scale.
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CHAPTER 3 RESEARCH METHODOLOGY
This methodology is useful because it is considered to be as one of the key specific
procedure which helps in identifying, processing and also analysing the key relevant information
associated with the research topic. It is useful in evaluating the reliability and validity of the
study. This is one of the key significant philosophical framework which helps in carrying out key
significant framework to improve the overall reliability and validity of the study. This section of
the study helps the researcher in effectively selecting the appropriate set of techniques which
helps the reader in gaining wider knowledge on the subject matter.
Research methods: It is the significant measure because it helps in effectively evaluating
wide set of knowledge on the subject matter of the research topic. The research methods tends to
mainly includes various techniques such as observation, experiments, focus group, mixed
methods, archival study, surveys, interviews, secondary data analysis, etc. in order to effectively
contextualize the findings to gain better perspective on the subject matter. It is classified into
quantitative and qualitative research methods (Kumar, 2019). Qualitative method helps in
gaining theoretical perspective of the data and attain better outcomes and results. This
methodology is useful because it tends to effectively provide inform set of new theories,
concepts and products. This method is useful in eliminating the potential for biases and it also
helps in developing better insight on the research topic. It helps in providing large set of content
which is relevant for the practical application. On the other hand, quantitative research methods
focuses on effectively evaluating numerical set of data which helps in gaining statistical data on
the research topic. This method is prominent because it quantifies the attitude, opinion and
various other variables in order to make generalized concept from the large population. It uses
mathematical and statistical tools in order to derive better set of results. The quantitative research
is classified into several parts which includes descriptive, correlational, experimental, quasi-
experimental and survey research. Quantitative method is considered to be as more scientific,
objective, focused, control sensitive, less biased and structured to gain better insight ob the
research topic. Quantitative method always tends to effectively end with the recommendation
and conclusion by evaluating the statistical numerical data. This method is less biased, fast and is
very useful for the decision- making process. This also helps the researcher in effectively finding
out the correlation between the variables. The researcher of the study will select quantitative
research methods to critically investigate how infrastructure impacts trade and economic growth.
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Research philosophy: This is the belief according to which the study will be carried out.
It helps the researcher to determine a way in accordance to which the data must be collected with
utmost significance and accuracy. The key assumptions have been set up to carry out the study
because it is useful in determining the strategy of the research. It is a complete phenomenon
according to which the data must be significantly gathered. It is classified into positivism and
interpretivism philosophy. Positivism philosophy method is useful in gaining factual knowledge
related with the observation. This information is highly derived from carrying out sensory
experience and helps in interpreting the data with appropriate logic and reasoning (Gritsenko,
2018). This approach is useful because it helps in revealing the true nature to define how the
society operates in a legal and sustainable manner. It helps in providing the researcher with the
new aspect to perceive the world. Positivism approach tends to effectively give rise to the
quantitative methodology with the key intention to generalize the results. Positivism approach
tends to state that, there are various set of natural laws which has been implicit within the nature.
Moreover, interpretivism philosophy method evaluates the key elements of the research aim and
objectives by indulging human interest into the subject matter. This approach is mainly
associated with the high degree of validity which helps in creating trustworthiness to attain
higher perspective and knowledge to gain better perspective associated with the subject matter.
This philosophy method is useful in effectively including symbolic interaction for subjectively
interpreting the environment. The researcher of the study will select positivism philosophy to
evaluate push and pull strategies for the government institutions.
Research design: This helps in providing a clear blueprint in a logical and a coherent
manner because it helps in addressing the research problem with utmost degree of relevance and
accuracy to attain the goals and objectives of the study. The research design helps in analyzing
and effectively collecting the data on various set of variables to find valid answers in a logical
manner to resolve the research issue. Research design is highly significant because it helps in
facilitating the smooth sailing of the research operations. This way it helps in yielding maximum
number of information with minimum expenditure of money, time and effort. It is classified into
exploratory and descriptive research design. Descriptive research design is useful because it
helps in in- depth describing the key elements of the study and helps in resolving the problems
by finding the best solution to the problem (Clandinin, Cave and Berendonk, 2017). This method
has the effective set of capability to describe the various set of events to effectively organize the
17

data in a key significant way. Descriptive research design is useful because it aims at describing
the situation, phenomenon and population accurately. This is useful in attaining wide variety
which help in the better investigation for carrying out the project. On the other hand, exploratory
research design helps in exploring the research problems and tends do not have any sort of past
data or studies for references while bridging the gaps of knowledge related with the research
topic. Exploratory research design is useful in building the understanding related with the
research problem. It is useful for the researcher to establish the strong foundation to explore the
patterns and key components related with the topic of research. It is useful in laying down the
initial groundwork for carrying out the future research. The researcher of the study will select
exploratory research design to analyze benefit of infrastructure development in economic growth.
Data collection: This is one of the key significant procedure which is useful in gathering
and effectively measure the effective procedure for effectively gathering and also measuring
information on specific set of variables which tends to enable the person from effectively
answering various set of research questions by effectively developing hypothesis and also
evaluating range of outcomes. Data collection is a useful phenomenon which is useful in
analyzing the relevant set of information for the potential research topic. It is classified into
primary and secondary source of collecting data. Primary source of data collection is significant
in collecting original set of first hand information which has been carried out for the specific
purpose. Use of primary data collection is considered to be quite expensive and is also a time
consuming procedure. The way through which primary data collection method can be collected
is through questionnaire, raw data sets, investigation, experiments, survey, interviews, etc. On
the other hand, secondary source of data collection is considered to already collected information
which can be used for future investigation to reduce the gap associated with the research problem
(Taherdoost, 2016). The key sources which are highly relevant for attaining data from the
secondary sources in turn mainly includes government data, books and journals, published
sources, newspaper, research scholars, international bodies, manuals and financial statement of
the company, articles, blogs, etc. The researcher of the study will opt for primary as well as
secondary source of data collection. This methodology is useful because it leads to investigation
and complete analysis of the infrastructure on trade and economic growth.
Sampling: This is one of the key significant procedure which helps in predetermining the
various set of key observations which has been undertaken by the sample selected from the large
18

population. This is useful in ensuring which helps in generalizing the findings from the research
sample to find valid answers to the range of research questions (Haydon, Browne and van der
Riet, 2018). Sampling is considered to be highly significant because it helps in selecting the right
sample size and respondents who helps in fairly generalizing the results and attaining significant
goals and objectives. It is classified into probabilistic and non- probabilistic sampling method.
Probabilistic sampling method mainly includes simple random sampling, cluster, stratified,
multistage sampling method. Non- probabilistic sampling method mainly includes quota
sampling, purposive, convenience and snowfall sampling. One of the key significant method
associated with the probabilistic sampling method is mainly linked with providing guarantee
which leads to better attainment of the results and outcomes. This method gives equal chance to
the people from large population to get selected within the sample size. This sampling is useful
in collecting the best possible sample by representing the large population. Non- probabilistic
sampling method where the people from large population does not tend to have equal chance of
getting selected within the sample size. This method of the research does not tend to completely
rely on the subjective judgment which has been made by the researcher. It is cost effective and
time efficient approach. It helps in selecting the adequate set of sample size to carry out the
study. Purposive probabilistic sampling states that, the researcher completely rely on their own
judgment to gain better knowledge on the subject matter. It helps in selecting the population with
similar characteristics. The researcher of the study has opted for non- probabilistic purposive
sampling method to investigate how infrastructure impacts trade and economic growth.
Data analysis: It is one of the key significant measure which helps in transforming,
modeling and cleaning the data sets which has been collected. This is one of the key measure
which helps in discovering various set of useful information which has been associated with the
decision making process. The key purpose associated with the data analysis is to gain new set of
information which has been effectively carried out for the decision making aspect and gain wider
set of knowledge (Tan, Liu and Lin, 2018). This is one of the key significant procedure which
helps in systematically analyzing the relevant data sets. This is one of the effective process of
applying logical and statistical techniques which helps in describing and illustrating the specific
data sets. Moreover, data analysis is useful in appropriately analyzing the data with appropriate
set of research findings. It is classified into thematic and SPSS analysis. Thematic analysis is one
of the key significant measure which is used while carrying out the qualitative sets of data. The
19

researcher mainly focuses on examining the various common themes with utmost degree of
accuracy. The researcher mainly focuses on evaluating the key patterns which has been occurred
on the repeated basis. On the other hand, SPSS analysis is highly significant because it helps in
surveying on the key relevant data sets in order to mine the data to attain valuable results
associated with the research project (What is SPSS and How Does it Benefit Survey Data
Analysis?, 2018). The SPSS research helps in mining the large set of complex data which is
significantly useful in the attainment of the better results and outcomes related to the relevant
data sets. The researcher of the study must also focus on extensively evaluating the research
problem and also manage the intervention to attain higher operational goals. The researcher of
the study has opted for SPSS analysis because the quantitative data to evaluate push and pull
strategies for the government institutions and benefit of infrastructure development in economic
growth.
Ethical consideration: It is one of the key integral part of the research study because it is
useful in carrying out the research in an ethical and sustainable manner. The participants of the
research are not prone to any harm while conducting the research study. Maintaining dignity and
respecting each participant must be effectively prioritized (Pruzan, 2016). This is one of the key
prominent way which helps in the selection of the right participants associated with the study.
Adequate set of consent has been effectively obtained from the participants because it helps in
effectively attaining the goals and objectives of the researcher. Moreover, the researcher of the
study must ensure voluntary participation and gives the flexibility to the participants to enter and
exit the research. They can exit the research any time they want without any boundation.
Complete anonymity has been maintained while carrying out the research and the researcher has
kept all the information confidential. No animals and human beings has been harmed at the time
research has been conduced. The researcher ensures that all the necessary precautionary
measures are taken into consideration to attain goals and objectives of the study by carrying
research in an ethical and legal way. The researcher mainly focuses on assessing to the relevant
set of components of the study to attain better perspective to carry out the study. A good research
must always be well analysed and ethically approved in order to carry out the study in a legal and
reliable manner. Informed consent has been taken from all the participants of the research which
helps in carrying out the study with utmost degree of accuracy and efficiency. The researcher of
20

the study also focuses on complying with the intellectual property rights which helps in carrying
out study in a legal and reliable manner.
Research limitation: Limitations are the influencers which cannot be controlled by the
researcher. These are the shortcomings, influences and key conditions which are not controlled
by the researcher at the time of carrying out the study. These research limitations put restrictions
on the conclusion and research methodology. One of the key limitation associated with the
research is linked with the time constraints. It is crucial for the researcher to examine the key
limitations of the study which helps in carrying out the study in a systematic and reliable manner.
The researcher of the study must mainly focus on effectively preparing a specific time line to
complete all the task on a timely manner (Ngozwana,2018). Another key limitation of the
researcher is the non- availability of the resources which can hinder the performance and quality
of the specific research. The key issue while selecting the right sample size is one of the key
significant limitation related with the research project. In order to effectively remove the barriers
associated with the research limitation the researcher must focus on selecting the appropriate set
of methodology to complete the study on a timely and reliable manner. Limited degree of access
to the data is another key limitation which the researcher face while carrying out the study.
However, the researcher did not let this limitation affect the credibility of the study. Lack of
availability of the resources is another major limitation which has been faced by the researcher.
Lack of human resource, physical resource and financial resource are the key limitations which
has been faced by the researcher (How To Present Study Limitations and Alternatives, 2020). In
order to resolve this issue, the researcher mainly focuses on developing a plan to ensure all the
resources are available on a timely and duly manner to complete the research study with utmost
degree of accuracy and efficiency. Hence, it is very crucial to address this research limitations to
limit the potential weaknesses and attaining all the aims related with the research topic
effectively.
21

CHAPTER 4 DATA ANALYSIS
In order to analyse the impact of trade and infra on economic growth and GDP relevant data
was gathered. With that it easy to relate them and then find out how they both are interrelated.
Moreover, the data gathered was of India of year 2000 – 2018. in that government expenditure
was collected of all those years. Thus, the data analysis is as follows:
Regression
Descriptive Statistics
Mean Std. Deviation N
valueofexpenditure 61.1200 21.91955 11
expenditure 254337.9091 113372.95073 11
Correlations
valueofexpenditu
re
expenditure
Pearson Correlation valueofexpenditure 1.000 .993
expenditure .993 1.000
Sig. (1-tailed) valueofexpenditure . .000
expenditure .000 .
N valueofexpenditure 11 11
expenditure 11 11
Variables Entered/Removeda
Model Variables
Entered
Variables
Removed
Method
1 expenditureb . Enter
a. Dependent Variable: valueofexpenditure
b. All requested variables entered.
22

Model Summaryb
Model R R Square Adjusted R
Square
Std. Error of the
Estimate
Change Statistics
R Square
Change
F Change df1
1 .993a .986 .984 2.75428 .986 624.356 1
Model Summaryb
Model Change Statistics Durbin-Watson
df2 Sig. F Change
1 9a .000 1.913
a. Predictors: (Constant), expenditure
b. Dependent Variable: valueofexpenditure
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 4736.391 1 4736.391 624.356 .000b
Residual 68.274 9 7.586
Total 4804.665 10
a. Dependent Variable: valueofexpenditure
b. Predictors: (Constant), expenditure
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
1 (Constant) 12.297 2.123 5.792 .000
expenditure .000 .000 .993 24.987 .000
a. Dependent Variable: valueofexpenditure
23

Residuals Statisticsa
Minimum Maximum Mean Std. Deviation N
Predicted Value 35.7421 102.2380 61.1200 21.76325 11
Residual -3.47420 3.50529 .00000 2.61294 11
Std. Predicted Value -1.166 1.889 .000 1.000 11
Std. Residual -1.261 1.273 .000 .949 11
a. Dependent Variable: valueofexpenditure
Interpretation- from above table it is analysed that the significant value obtained is P= .000
which is less than P= 0.05. thus, null hypothesis is rejected and there is no relationship between
value of expenditure and expenditure. This means that even if expenditure increases there is no
increase in value of expenditure. So, it does not depend on value of expenditure that how much
actual expenditure is done by government in it. However, value of it depends on rise in economic
growth. moreover, value remain same in all case when there is rise in expenditure. Usually, value
is calculated by analysing outcomes and finding whether there is increase in GDP or not.
furthermore, value of expenditure rises when it is utilized in proper way and revenue generated is
more than expenditure. therefore, there is no relation between them. the value increases when
there is rise in economic growth.
Regression
Descriptive Statistics
Mean Std. Deviation N
GDP 6.6058 1.71399 19
expenditure 391955.8421 194617.96516 19
Correlations
GDP expenditure
Pearson Correlation GDP 1.000 .294
expenditure .294 1.000
Sig. (1-tailed) GDP . .111
expenditure .111 .
24

N GDP 19 19
expenditure 19 19
Variables Entered/Removeda
Model Variables
Entered
Variables
Removed
Method
1 expenditureb . Enter
a. Dependent Variable: GDP
b. All requested variables entered.
Model Summaryb
Model R R Square Adjusted R
Square
Std. Error of the
Estimate
Change Statistics
R Square
Change
F Change df1
1 .294a .087 .033 1.68562 .087 1.611 1
Model Summaryb
Model Change Statistics Durbin-Watson
df2 Sig. F Change
1 17a .221 1.586
a. Predictors: (Constant), expenditure
b. Dependent Variable: GDP
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 4.578 1 4.578 1.611 .221b
Residual 48.302 17 2.841
Total 52.880 18
a. Dependent Variable: GDP
25

b. Predictors: (Constant), expenditure
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
1 (Constant) 5.590 .889 6.290 .000
expenditure 2.591E-006 .000 .294 1.269 .221
a. Dependent Variable: GDP
Residuals Statisticsa
Minimum Maximum Mean Std. Deviation N
Predicted Value 5.9066 7.4348 6.6058 .50430 19
Residual -3.42029 1.80684 .00000 1.63813 19
Std. Predicted Value -1.386 1.644 .000 1.000 19
Std. Residual -2.029 1.072 .000 .972 19
a. Dependent Variable: GDP
Interpretation – it can be analysed from above table that the significant value obtained is
P= .221 which is less than P = 0.05. So, here null hypothesis is accepted. It means that there is
relationship between expenditure and GDP. thus, when there is rise in expenditure it increases
the GDP of nation. However, when government increases expenditure it directly impact on GDP
in positive way. There is rise in economic growth of nation. hence, GDP of nation is dependent
on government expenditure. Apart from it, when there is decrease in expenditure then economic
growth is affected as well. So, these both are interrelated to each other. generally, government
increases expenditure in order to raise economic growth. Along with it, economic growth is
identified on basis of how much expenses in incurred and to what it has affected on economic
growth of nation. the government do expenditure on various areas or segment such as health
care, transport, agriculture etc. which led to growth in those. these all areas are then integrated
and contribute in rise in GDP of nation.
26

Regression
Descriptive Statistics
Mean Std. Deviation N
percentofGDP 10.7811 .59474 19
expenditure 391955.8421 194617.96516 19
Correlations
percentofGDP expenditure
Pearson Correlation percentofGDP 1.000 -.181
expenditure -.181 1.000
Sig. (1-tailed) percentofGDP . .229
expenditure .229 .
N percentofGDP 19 19
expenditure 19 19
Variables Entered/Removeda
Model Variables
Entered
Variables
Removed
Method
1 expenditureb . Enter
a. Dependent Variable: percentofGDP
b. All requested variables entered.
Model Summaryb
Model R R Square Adjusted R
Square
Std. Error of the
Estimate
Change Statistics
R Square
Change
F Change df1
1 .181a .033 -.024 .60185 .033 .577 1
Model Summaryb
Model Change Statistics Durbin-Watson
df2 Sig. F Change
1 17a .458 .558
27

a. Predictors: (Constant), expenditure
b. Dependent Variable: percentofGDP
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression .209 1 .209 .577 .458b
Residual 6.158 17 .362
Total 6.367 18
a. Dependent Variable: percentofGDP
b. Predictors: (Constant), expenditure
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
1 (Constant) 10.998 .317 34.660 .000
expenditure -5.536E-007 .000 -.181 -.759 .458
a. Dependent Variable: percentofGDP
Residuals Statisticsa
Minimum Maximum Mean Std. Deviation N
Predicted Value 10.6039 10.9304 10.7811 .10774 19
Residual -1.05797 1.01958 .00000 .58490 19
Std. Predicted Value -1.644 1.386 .000 1.000 19
Std. Residual -1.758 1.694 .000 .972 19
a. Dependent Variable: percentofGDP
28

Interpretation – It is stated from table that significant value P= .458 that is less than P= 0.05. It
means that null hypothesis is rejected. There is no relationship between percent of GDP and
expenditure done. It means that expenditure is not incurred on basis of how much GDP rate is. in
addition to that, expenses are done on basis of forecast of economic growth and how much is
revenue generated by government with help of it. However, percent of GDP refers to growth as
compared to expenditure done. thus, when expenditure is increased there is slight affect on GDP
percent rate. It is because there are some other factors as well due to which GDP is affected.
Apart from that, the government also evaluate several aspects that how much improvement is
required in trade, infra etc. hence, it has to be change in percent of expenses that is made. then,
accordingly changes are made into expenses.
Correlation
Correlations
year valueofexpenditu
re
year
Pearson Correlation 1 .990**
Sig. (2-tailed) .000
N 11 11
valueofexpenditure
Pearson Correlation .990** 1
Sig. (2-tailed) .000
N 11 11
**. Correlation is significant at the 0.01 level (2-tailed).
Interpretation – from above data it is evaluated that the significant value generated is P= .990
which is more than P= 0.05. So, alternate hypothesis is accepted. it means that there is
relationship between year and value of expenditure. With every year the value of expenditure is
rising. it is because the government is expending more in order to boost economic growth. Also,
it is observed that with year there is rise in GDP as well so value is increasing as well. Value of
expenditure refers to how much more money is invested by government in economy. hence,
value rises when there are more expenses made.
29

Correlations
year1 expenditure GDP
year1
Pearson Correlation 1 .990** .342
Sig. (2-tailed) .000 .152
N 19 19 19
expenditure
Pearson Correlation .990** 1 .294
Sig. (2-tailed) .000 .221
N 19 19 19
GDP
Pearson Correlation .342 .294 1
Sig. (2-tailed) .152 .221
N 19 19 19
**. Correlation is significant at the 0.01 level (2-tailed).
Interpretation – By interpreting data it is evaluated that there is relationship between year and
expenditure. it means that when expenditure is increasing year wise. with each year expenditure
increases. it enables in rise in economic growth. Moreover, expenditure is increased by
government to improve economic growth. Besides that, there is no relation between GDP and
year. In this significant value obtained is P= .152 that is less than P= 0.05. so when GDP rises
there is no role of year in it. the economic growth can decline as well in next year. furthermore, it
is found that there is relationship between GDP and expenditure. here, GDP depends on
expenditure done. hence, when government increase expenses it automatically results in rise in
GDP. this led to raise in trade and economic growth as well. Besides that, capital is boosted by
government in nation to boost trade. it leads to build in infrastructure. Therefore, it is found that
all factors are not related to each other.
Correlations
expenditure GDP
expenditure
Pearson Correlation 1 .294
Sig. (2-tailed) .221
N 19 19
GDP
Pearson Correlation .294 1
Sig. (2-tailed) .221
N 19 19
30

Interpretation – It can be interpreted from table that significant value is P= .221 that is less than
P = 0.05 so, there is correlation between them. furthermore, GDP depends on how much
expenditure is made. it focus on many things that expenses made are relevant to GDP or not and
areas where those expenditure is incurred. Moreover, it is stated that when more expenses are
incurred then it leads to rise in GDP to great extent. But on contrary if there is cut in expenditure
then it directly affect on economic growth and GDP rate. It is essential to find out that how much
there is increase in GDP rate.
31

CHAPTER 5 DISCUSSION
From above data, it is analysed that for every nation there is need to increase their economic
growth so that social and economic life of people is improved. However, economic growth
depends on many factors that exist inside nation as well as outside. due to those factors economic
growth is affected. the factors within country are government expenditure, trade policy, market
condition, FDI, etc. However, the other factors are global economic condition, currency rate and
many others. So, any change in these can lead to impact on GDP and economic growth directly.
Along with that, there are basically two main element of economic growth that is trade and
infrastructure. they are directly related to it. also, with rise in GDP trade and infra increases.
furthermore, country trade and infra is highly dependent on its economic growth. It is important
to maintain trade and infra within nation so that GDP is maintained. also, it has been analysed
that there is impact of infra on trade and economic growth. when there is no proper infra within
country it affect on trade and GDP. there has to be proper and strong network of infra so that
trade can be easily done. Thus, it is analysed that infra highly impact on trade and economic
growth. Thus, it is stated that there is no relationship between expenditure and value of
expenditure. this is because significant value obtained is P= .000 which is less than P= 0.05. thus,
null hypothesis is rejected. This means that even if expenditure increases there is no increase in
value of expenditure. The value is calculated on basis of how much rise is there in GDP of
nation. Besides that, when expenses are incurred properly in all sector and they all contribute in
economic growth in positive way then value of expenditure increases. it is related to trade and
infra. However, when infrastructure is improved there is rise in trade. Moreover, it is found that
value of expenditure decreases when infrastructure is not improved. but still there is no relation
between them.
In addition, it is analysed that significant value generated is P = .221 which is less than P =
0.05. So, here null hypothesis is accepted. It means that there is relationship between expenditure
and GDP. thus, when there is rise in expenditure it increases the GDP of nation. this is because
government make expenditure to improve infra so that trade can be done easily. Moreover, in
economic growth profit, cost and revenue play important role. the expenses are incurred on basis
of how much revenue or profit is obtained. alongside, they all are related to government
expenditure made. thus, it highly affect investment done in infra. hence, when businesses cost are
32

more than their profits then they do not invest more. hence, government is not able to collect
more tax from them. so, it automatically leads to decline in investment that is made by gov in
infra. this directly affect on economic growth as in negative way. In addition to it, as already
expenditure is related to GDP of nation it impacts on economic growth. so, when expenditure is
increased to 1% then GDP increases to 2- 3 %. so, there is direct relation between them.
however, when expenses are cut off in particular sector then it decline its growth. so, overall
contribution is also decreased due to it. The entire trade is impacted to a great extent. Moreover,
it has been evaluated that the significant value P= .458 that is less than P= 0.05. It means that
null hypothesis is rejected. There is no relationship between percent of GDP and expenditure
done. It means that expenditure is not incurred on basis of how much GDP rate is. but when
expenses are made there are some criteria and facts as well as figures which is taken into
consideration. So, on basis of that expenditure is incurred. this means that forecasting is done of
GDP and then government decide how much expenditure is to be incurred in next 2- 3 years. It is
necessary to analyse profit a
So, it has been evaluated that government calculate and predict that how much expenses
is to be incurred on which sector. hence, on basis of that trade policy and infrastructure
development is done. hence, when there is strong network of infra in nation it becomes easy for
other countries to trade in it. this is because it enables in transport of goods and services from
one place to another. In addition to it, government evaluate what improvement is required in that
sector and then expense is incurred on building infra in it. Moreover, it is found that pull and
push strategies are formed and implied on basis economic condition. the push strategy allows
government to attract FDI within nation in order to boost economic growth. they push economic
growth by doing more and more investment in it. the government focus on increasing expenses
on infra . this leads to improving trade. likewise, pull strategy leads to rise in expenditure in
economy. thus, there is impact of this strategy on GDP of nation. on contrary in pull strategy
government pull expenditure from economy. they take out investment from infra which leads to
decline in economic growth. thus, there is relationship between push and pull strategy as well
with infra and expenditure. besides that, the expenditure differs on basis of type of strategy
adopted by government. therefore, there is affect on expenses as well due to strategy. hence, in
push strategy focus is on increasing expenses and investing more in infrastructure. thus, chances
of rise in GDP increases. similarly, in pull strategy investment is not made in infra, rather
33

expenses are taken out by government. However, it is important to decided that what strategy is
to be adopted.
Furthermore, it has been analysed that there is great benefit of infrastructure in economic
growth. this is because it provides proper transport system through which there is smooth
movement of goods. more and more companies invest within nation in order to earn high profit.
this results to bring in more investment within nation and boosting economic growth. A well
developed infra provide a framework on doing trade with other countries and businesses. thus,
more trade means rise in tax and revenue of government. thus, when revenue is increased then
government incur more expense to build infra in rural areas. in this way it results in rise in
economic growth. The infrastructure is useful for higher degree of economic growth and also has
an elevating the poverty within the economy. Adequate form of infrastructure in the form of
effective railway transport system, Road transport, ports, airports, power, etc. in order to improve
the working efficiency of the individual people. Rural poverty is one of the effective measure
which hinders the mobility and development of the infrastructure within the economy. Lack of
infrastructure in turn leads to deficit within the economy and leads to poor selling output in the
market because of ineffective infrastructure facility within the economy. For the long span of
time, infrastructure investment is very useful in boosting up economic growth by effectively
increasing the potential supply and capacity of the economy. Increase in infrastructure spending
will also result in rise in the gross domestic product of the economy. Increase in the
infrastructure helps in significantly boosting up the economic activity and also leads to high
growth. Thus, if trade increases it leads to economic growth. However, when trade increases it
leads to infrastructure development. this is because it allows companies to invest in within
nation. basically, large and SME are back bone of economic growth. The products manufactured
are exported to other countries and trade is done. it has been analysed that every country trade
and infrastructure are interrelated to one another. the infrastructure plays vital role in promoting
trade and economic growth.
34

35

CHAPTER 6 CONCLUSION AND RECOMMENDATIONS
Conclusion
From the above conducted study it has been concluded that, low infrastructure facilities
and quantity leads to trade restrictions and it also increases the transportation cost. Infrastructure
development is highly crucial for the growth in the economy because it elevates the poverty from
the country and it also helps in increasing the job opportunities for the people. Lack of
infrastructure needs to deficit within the economy and poor standard of living among the
individuals. Push strategy is useful because it helps in effectively gaining high degree of
exposure to the product. One of the key significant benefit of the infrastructure development is
useful because it helps in improving the standard of living and effectively attaining higher
operational growth and sustainability of the economy. Economic growth is identified on basis of
how much expenses has been incurred and to what it has affected on economic growth of nation.
Effective communication, uninterrupted power supply, feasible transportation modes, etc. are
effective measures that results in good infrastructure to attract investors worldwide and thus
business sector grows inevitably.
This study has used quantitative research methodology approach in order to analyse
impact of infrastructure on trade and economic growth. This is done with the use of SPSS tool to
find the correlation between various factors and variables associated with the research topic. The
researcher of the study has opted for SPSS analysis because the quantitative data to evaluate
push and pull strategies for the government institutions and benefit of infrastructure development
in economic growth. The topic of the research has been explored thorough in a reliable and
ethical manner by complying various laws and policies.
From the above conducted study it has been concluded that, there is no relationship
between value of expenditure and expenditure. The value of the expenditure tends to rise with
the growth in the level of the economy. Hence, there seems to be a positive relationship between
the rise in the value and rise in the economic growth. Good quality infrastructure is of utmost
importance for faster and sustainable growth of the economy. There is no relationship between
percent of GDP and expenditure done. It means that expenditure is not incurred on basis of how
much GDP rate. Hence, it has been evaluated that, the government is expending more in order to
boost economic growth. There seems to be no significant relationship between the year and
36

expenditure. However, there is relationship between GDP and expenditure. Increase in
government expenses automatically results in rise in GDP. Any change in these can lead to
impact on GDP and economic growth directly. Economic growth relies on various key factors
that exist inside nation as well as outside. Expenditure increase has slight effect on the GDP
percent rate. These factors affect the economic growth. The factors which tends to largely
influence the country and economic growth are government expenditure, trade policy, market
condition, foreign direct investment, etc. Thus, if trade increases it leads to economic growth.
However, when trade increases it leads to infrastructure development. The products
manufactured are exported to other countries and trade is done. it has been analysed that every
country trade and infrastructure are interrelated to one another. the infrastructure plays vital role
in promoting trade and economic growth.
From the above conducted study it has been summarized that, economies who has been
performing good have finely built infrastructure which is useful in attracting the companies from
across globe that eventually leads to growth within the economy. Improvement within the
infrastructure eventually leads to increase the employment opportunities and better standard of
living for the people. Hence, there is significantly higher opportunities to the people in
effectively attaining higher sustainable growth and efficiency. Every economy need to develop
reliable and sustainable infrastructure which is useful in connecting supply chains efficiently
moving goods and services across various borders. Lack of infrastructure within the country
tends to largely affect the economy because it leads to low degree of poverty levels within the
country. Railways is an integral part of the infrastructure development which helps in efficient
working within the economy. There seems to be high degree of positive impact on the
expenditure and growth in the GDP.
Recommendation
It has been recommended that, the government must focus on taking measures to develop
rural areas, better urban infrastructure development and alleviation of the poverty (Luu and et.al,
2019). The government must focus on improving the rural areas by enhancing the road
infrastructure and transport infrastructure which helps the farmers in selling the goods and
services to various urban area in order to earn more and reduce the poverty levels. Empowering
the state and the local government is one of the key effective strategy which helps in the
attainment of the goals and objectives by the government institution. The government institution
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must highly focus on enacting the monetary policy, effectively fixing the exchange rate and also
controlling the age and price (Kotowska, Mańkowska and Pluciński, 2020). This way it is
considered to be as one of the most significant measure to improve the infrastructure.
It has been recommended that, Revamping the highway trust is one of the key prominent
strategy which helps the government institution in improving the infrastructure of the economy.
Improving the transportation facilities helps in effectively delivering the good and service which
helps in carrying out the business of the person with utmost degree of accuracy and efficiency.
Strengthening of the existing transportation network is considered to be of key relevance
importance which is useful in protecting the transit system and effectively improve the
infrastructure facilities (Sun and Cui, 2018). Development of the highways and improvement in
the road infrastructure facilities results in higher operational goals and objectives which leads to
better economic trade and growth within the infrastructure. Making smart bridge infrastructures
is also one of the key signifiant measure which helps in boosting up the growth of the economy
by engaging in projects which leads to higher growth ad efficiency. It is crucial to develop a
strong network for the infrastructure because it helps in boosting up the economy and leads to
higher operational growth and efficiency.
It has been recommended that, establishing of the new set of infrastructures such as banks
for financing the rehabilitation, expansion, construction and replacement of the infrastructure.
Infrastructure of the country like India can be effectively improved with the help of performance
based management. India tends to largely focus on improving the infrastructure by effectively
investing in the project to gain better results and outcomes (Lokesha and Mahesha, 2017). The
government must significantly access to the travel information to improve the infrastructure
activities of the individual person.
Better coordination between regional, local and state government within the state helps in
improving the infrastructure benefits. They must focus on effectively developing range of
policies and procedures to effectively attain better results and outcomes associated with the
infrastructure. Engaging within the green house emission project is of utmost importance
because it helps in improving the infrastructure facilities within the country. There seems to be
high degree of greater need for coordinating the infrastructure investment decision (Bonga and
Sithole, 2020). The government must focus on developing the strategic vision for the
infrastructure for boosting up the trade and economy of India.
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It has been recommended that, coordinating the infrastructure policy across the various
level of the government and it helps in improving the infrastructure facilities which leads to
higher operational growth and sustainability of the economy (Khoshnava and et.al, 2020). The
government must also focus on ensuring good regulatory compliance to ensure the projects are
completed on duly timely manner which helps in the boosting up the trade and economy with the
improvement in the infrastructure. The government must focus on developing an effective
infrastructure strategy which leads to better decision- making and results. Engaging with the
local communities is useful in engaging with the major infrastructure projects to boost up the
economy level.
It has been recommended that, use of advanced technology is very significant because it
mainly helps in improving the infrastructure facilities and design to boost up the economy levels.
Empowering state and local government of the India to take necessary measures to improve the
infrastructure helps in boosting up the economy and improving trade facilities (Bröcker, Dohse
and Rietveld, 2019). Improvement within the infrastructure is of utmost importance because it
helps in driving up the economy level. The government must also focus on significantly ensuring
the key areas where there is a need for infrastructure development. The infrastructure sector is
considered to be highly propelling which helps in developing the infrastructure facilities of the
India. The government focus on initiating policies which helps in ensuring time bound creation
of the advanced infrastructure facilities (Chotia and Rao, 2017). The scope of the future research
is wide because it is useful in gaining the insight on the key factors which helps in improving the
infrastructure facilities. This study is useful in reducing the gap and any set of knowledge deficit
related with the research topic. In the future, the researcher can carry out complete thematic
analysis in order to ensure that, all the relevant data sets helps in analysing the patterns
associated with the research topic.
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