With low productivity growth in Canada and Ontario, many analysts have turned to investments in infrastructure as both a cause of, and solution to, the problem. In both Canada and Ontario, infrastructure stocks as a percentage of GDP fell throughout the 1980s and 1990s, levelled off in the early 2000s, and recently started to show some growth. Alarmingly, Ontario has one of the lowest levels of investment in infrastructure when compared to other provinces. Because of that, investment in infrastructure came to the forefront of public policy debates. But, what is the return on investment in infrastructure, and how can different types of infrastructure investment affect productivity? Faced with these questions, the Institute estimated the productivity effects of infrastructure and created recommendations on how all levels of government and private sector can strategically allocate resources to achieve better results.
The Institute for Competitiveness & Prosperity (ICP) is an independent, not-for-profit organization that deepens public understanding of macro and microeconomic factors behind Ontario’s economic progress. We are funded by the Government of Ontario and are mandated to share our research findings directly with the public.