Connective infrastructure represents the lifeblood of cities everywhere and infrastructure investment decisions carry major implications for growth and competitiveness in both developed and developing economies.
Airports Enabling Global Connections and Driving Local Growth
Airports are powerhouses in terms of facilitating business and commerce.
An analysis of airport passenger traffic, FDI flows, and GDP data from 2005 to 2017 across 207 cities globally found that for every 1,000 people transiting through an airport, one can expect an increase of $30,000 in FDI inflows, $940,000 bump in exports, and increase of $7.3 million in GDP.
1,000 people transiting through an airport
Expanding airport infrastructure and air traffic have been the focus of emerging commercial hubs around the world, notably the United Arab Emirates, and have been at the heart of regional development plans to boost tourism and trade.
DUBAI GROWING AS A GLOBAL HUB FROM INFRASTRUCTURE INVESTMENT
16.5% total aviation
10.2% tourism benefits
(As % of GDP)
Digital Connectivity Advancing New Industries, Accelerating SMEs
While foundational infrastructure remains paramount for competitiveness, the productive potential of digital technologies presents undeniable opportunities for growth through greater efficiency, evolution of work, and facilitation of e-commerce and services trade, among myriad other potential impacts.
Among WTC cities with below average internet penetration of under 54.5 percent, every 10 percentage point increase in household internet penetration is associated with a boost in GDP per capita growth by half a percentage point.
+10 percentage point household internet penetration
+0.5 percentage point
GDP per capita growth
Every 10 percentage point increase in household mobile phone penetration in a city is associated with a boost in city GDP growth by nearly 0.2 percentage point.
+10 percentage point increase in household mobile phone penetration
+0.2 percentage point
A boost of this magnitude on the national level would translate into an estimated additional $100 million in additional GDP in Ghana, $4.1 billion in Brazil, and $5.2 billion in India.
Connective Infrastructure Facilitating Trade & Streamlining Supply Chains
In addition to being foundational for city functioning and attracting FDI, connective infrastructure is the primary enabling factor for interregional and international trade — providing access to new markets and lowering costs for consumers by minimizing costs along the supply chain.
Polling Question: How will further technology integration most significantly impact trade and investment?
52% of those polled indicated technology integration will create greater efficiency in trade and logistics
Create greater efficiency in trade and logistics
Drive development of new industries and hubs
Make business connections easier to form/sustain
Reinforce the status quo of current leaders