RBA’s Ellis: Infrastructure isn’t a new “engine of growth”
Reserve Bank of Australia (RBA) Governor Luci Ellis said on Friday that infrastructure investment can yield significant spillover benefits to the rest of the economy, still, it is not so much an engine of growth as an enabler of growth.
The economy benefits from a larger capital stock and the productivity benefits of infrastructure.
Infrastructure is justified by its contribution to the public good. It is not so much an engine of growth as an enabler of growth.