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Explain how an underinvestment in some “new” sectors of infrastructure might erode future competitiveness for some...

Explain how an underinvestment in some “new” sectors of infrastructure might erode future competitiveness for some of the leading economies

Explain how an underinvestment in some “new” sectors of infrastructure might erode future competitiveness for some of the leading economies

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When there is underinvestments in the new areas of infrastructure, then it causes domestic industries to stagnant their growth who are specifically dependent upon these infrastructure. It makes firms in these industries to be less competitive and remain inefficient while unable to compete in the international market. Further, the impact of under-investments, also affects the presence of specialized workforce and amenities that could cater the growth of industries, depending upon the infrastructure. Hence, it reduces the attractiveness of the economy who suffers from it. As a result, future competitiveness of the economies decrease even if they are leading today. It also happens, because some other economies move past of them with adequate investments and are able to attract capital and other resources due to competitive advantages offered by them.

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