Modernization of the Backbone Infrastructure: How to Evaluate Economic Effects

Tatyana N. Mikhailova – Senior Researcher of the Russian Presidential Academy of National Economy and Public Administration, Candidate of Economic Sciences, Associate Professor (Moscow, Russia). E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

The projects of modernization of transport infrastructure which were included in the relevant national project can modify the geography of economic activities inside the country and promote economic growth. However, such effects are rarely taken into account in investment program planning. According to the analysis of this issue, the implementation of transport projects in densely populated regions produces a substantial effect of «public good» which is to be taken into account in decision-making regarding the infrastructure development.

Key words: transport, transport projects, transport infrastructure, aggregate demand multiplier, economic geography, public good effect.