Accounting for Infrastructural Investment and Economic Development

This study evaluates the impacts of infrastructure accounting and financial reporting practices on economic development. It aims at systematizing the empirical knowledge through systematic review of the recent literature. The review is consistent in its findings that transparent and standardized accounting system of infrastructure spending has a positive contribution to the economic development. Countries implementing high-quality financial reporting have been observed to record enhanced economic performance, such as the effectiveness of infrastructure and high levels of investor confidence. Regardless of these insights, there is a little concern in the literature on the microeconomic consequences of infrastructure accounting and the part played by digital innovation in financial reporting procedures. The results imply that policymakers and development agencies ought to put resources into the fortification of infrastructure accounting practices to improve the result of public investment. Transparent financial reporting systems and standardized financial reporting can help encourage efficiency and attract private capital and encourage institutional reforms that enhance fiscal accountability, especially in low- and middle-income countries.