The Standard Gauge Railway will offer Kenya positive effects on economic productivity, although effects on economic development remain ambiguous. Chinese firms' construction records are overall positive, although their financing and general practices are dubious at best. Transport investments should be characterized by meticulous planning, independent reviews, a competitive bidding process and careful selection to maximize return on investments. Excessively large projects should be avoided in developing countries due to corruption's detrimental impacts, and the focus should be on a multi-sided approach that targets a variety of sectors, rather than overinvesting in transport infrastructure. More research, supported by an empirical basis, would improve understanding of the challenges facing developing nations' socio-economic development, as well as the most effective tools to overcome them.

G. Mingardo
hdl.handle.net/2105/38297
Business Economics
Erasmus School of Economics

R.B. Voskamp. (2017, July 11). Investing in Transport Infrastructure in Developing Countries. Business Economics. Retrieved from http://hdl.handle.net/2105/38297