The Role of Infrastructure Investment in Economic Growth in Afghanistan, Pakistan, Iran, Bangladesh, and Nepal during the Years 2015 to 2023

Abstract

This study aims to examine the impact of infrastructure investment on economic growth in Afghanistan, Pakistan, Iran, Bangladesh, and Nepal during the period 2015–2023. Annual panel data were collected from the World Bank, and prior to estimation, unit root test was conducted to assess the stationarity of the variables. Based on the results of these tests, the appropriate model was selected, and the generalized least squares (GLS) method was applied to control heteroskedasticity. The findings indicate that infrastructure investment has a positive effect on economic growth, although this effect was significant only at the 10 percent level. In contrast, access to electricity and life expectancy demonstrated positive and statistically significant effects at higher levels, playing a crucial role in strengthening economic growth. Overall, the results suggest that infrastructure investment can enhance economic growth, but its effectiveness depends on the quality of governance and institutional conditions. These findings highlight the necessity of combining infrastructure investment with institutional reforms and attention to human capital in order to achieve sustainable and inclusive economic growth.