THE OECD PRINCIPLES OF ECONOMIC DEVELOPMENT IN TRANSPORT INFRASTRUCTURE
Keywords:
Key words: strategic vision, fiscal sustainability, regulatory quality, coordinated governance, evidence-based selection, procurement efficiency, integrity and engagement, total factor productivity (TFP), Social Rate of Return (SRR), Net Present Value (NPV), Life-Cycle Costing (LCC), Quality Infrastructure Investment (QII), Capital Expenditure (CAPEX), Operating Expenditure (OPEX), Weighted Average Cost of Capital (WACC)Abstract
Abstract: This study evaluates OECD principles for transport infrastructure, where investment typically accounts for 0.8% of GDP. By analyzing data across 38 member nations, we assess the transition from volume-based to value-based investment. Statistical indicators show that adherence to OECD frameworks—focused on fiscal sustainability and evidence-based selection—mitigates historical cost overruns of 20–45%. Findings demonstrate that a 1% increase in quality infrastructure stock correlates to a 0.05–0.2% rise in total factor productivity. Ultimately, economic development depends on regulatory alignment and "Quality Infrastructure Investment" (QII) metrics rather than raw capital expenditure.
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Published
2025-12-21
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