THEORITICAL FRAMEWORK
THEORITICAL FRAMEWORK
The provision and development of Infrastructure has been subject of much theoretical analysis and empirical studies. It is referred as an umbrella term for many activities and named as “Social Journal of Business Management & Social Sciences Research (JBM&SSR) ISSN No: 2319-5614 Volume 2, No.1, January 2013 _________________________________________________________________________________ www.borjournals.com Blue Ocean Research Journals 83
Overhead Capital”, “Economic Overheads”, “Overhead Capital”, “Basic Economic Facilities”, and so on. Nurkse elaborated the concept of overhead capital. According to him “overhead investment aims at providing the services – transport, power, and water supply, which are basic for any productive activity, cannot be imported from abroad, required large and costly installations and in the history of western economics outside England, have usually called for public assistance or public enterprise. Typically overhead investments take a considerable time to reach maturity in growing. To be sure, all investments depend on expectations but the time range of expectations is opt to be particularly long in overhead projects because of their lumpiness combined with their high operational capital intensity. Other development economists like Rostow and Hirschman have also used the word of social overhead capital.
W. W. Rostow (1960) in his 'Theory of Stages of Growth' According to him SOC is a pre-condition for take-off into self-sustained growth. Investment in SOC and development of those services encourages potential entrepreneurs to invest in risk-bearing business. Those SOC prepare the base for expansion of economic activities by decreasing the cost and increasing the profitability of productive activities. It also helps in the creation of an educated labour force, superstructures of communication networks, and mechanism to provide energy, basic civic amenities and law and order. According to Rostow, “All
The provision and development of Infrastructure has been subject of much theoretical analysis and empirical studies. It is referred as an umbrella term for many activities and named as “Social Journal of Business Management & Social Sciences Research (JBM&SSR) ISSN No: 2319-5614 Volume 2, No.1, January 2013 _________________________________________________________________________________ www.borjournals.com Blue Ocean Research Journals 83
Overhead Capital”, “Economic Overheads”, “Overhead Capital”, “Basic Economic Facilities”, and so on. Nurkse elaborated the concept of overhead capital. According to him “overhead investment aims at providing the services – transport, power, and water supply, which are basic for any productive activity, cannot be imported from abroad, required large and costly installations and in the history of western economics outside England, have usually called for public assistance or public enterprise. Typically overhead investments take a considerable time to reach maturity in growing. To be sure, all investments depend on expectations but the time range of expectations is opt to be particularly long in overhead projects because of their lumpiness combined with their high operational capital intensity. Other development economists like Rostow and Hirschman have also used the word of social overhead capital.
W. W. Rostow (1960) in his 'Theory of Stages of Growth' According to him SOC is a pre-condition for take-off into self-sustained growth. Investment in SOC and development of those services encourages potential entrepreneurs to invest in risk-bearing business. Those SOC prepare the base for expansion of economic activities by decreasing the cost and increasing the profitability of productive activities. It also helps in the creation of an educated labour force, superstructures of communication networks, and mechanism to provide energy, basic civic amenities and law and order. According to Rostow, “All