Impact of Infrastructure on Economic Growth: Evidence from G20 Countries

This study investigates the impact of infrastructure investment on economic growth in G20 countries, with emphasis on both its direct and indirect effects through supply chain efficiency and national competitiveness. While existing literature has examined these relationships in various contexts, few studies have addressed them comprehensively within the G20, which collectively represents a substantial share of global GDP and trade. Using SEM-PLS and data from 2019–2023, the findings reveal that infrastructure investment has a statistically significant positive effect on economic growth. However, the indirect effects via supply chain efficiency and competitiveness are statistically insignificant, suggesting complexity in the transmission mechanisms. These results provide valuable insights for infrastructure policy and highlight the need for targeted strategies to enhance infrastructure utility and supply chain integration. This study contributes to the literature by providing empirical evidence from major economies and informing future infrastructure planning in global economic forums.