Infrastructure Development and Labor Market Efficiency: A Sectoral Analysis of Transport and Energy Investments in West Africa (2010–2025)


Authors : Olugbenga F. Akomolehin; Ibukun F. Olusegun; Olusegun J Famoroti; Jimba I. Kareem; Abiodun T. Ogundele

Volume/Issue : Volume 10 - 2025, Issue 8 - August

Google Scholar : https://tinyurl.com/3n98h9j2

Scribd : https://tinyurl.com/2pyjv8fh

DOI : https://doi.org/10.38124/ijisrt/25aug1152

PlumX Metrics

Semantic Scholar

ResearchGate

Google Scholar

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.

Note : Google Scholar may take 30 to 40 days to display the article.

Abstract : The aim of this study is to perform a structured literature review on the development infrastructure and its impact on labor market efficiency in West Africa with emphasis in the transport and energy sectors from 2010 to 2025. Based on a comprehensive review of peer-reviewed literature, institutional reports, and policy analyses, the review examines infrastructure employment effects through job creation potential, labor mobility, and workforce productivity across nations. Transport infrastructure in turn, reveals the findings, creates short-term construction employment (direct), contributes to trade facilitation and by extension port-related jobs (indirect short term) and enables greater geographic access to labour markets. On the other hand, energy infrastructure—grid development or geothermal/substation projects create long term employment via building industrial capability, adding exports, boosting SME growth and supporting human capital formation. At the same time, this research also points out major impediments to the development of infrastructure-related labor markets, flagging up skill mismatches, spatial disparities and fragmented policy coordination. This is demonstrated through case examples from Nigeria, Ghana, Côte d'Ivoire and Senegal showing the transformative possibilities and structural constraints of infrastructure-led employment strategies in the region. Related: The study suggests more synchronization between infrastructure planning and national labor and education policies, the promotion of labor-intensive models, gender-inclusive practices, regional integration and targeted human capital development. They are important for infrastructure to ensure its function as a driver of sustainable and inclusive economic growth in West Africa.

Keywords : Infrastructure Development, Labor Market Efficiency, Transport Sector, Energy Sector, Employment, Human Capital, West Africa, Sectoral Analysis.

References :

  1. African Development Bank. (2021). West Africa economic outlook: From pandemic to sustained recovery. African Development Bank Group.
  2. Adeosun, K., & Yakubu, M. (2021). Infrastructure investment and informal sector employment in Nigeria. Journal of African Development Studies, 13(2), 88–105.
  3. Aguilar, J., & Goldstein, M. (2021). Infrastructure and inclusive labor market outcomes in Sub-Saharan Africa. Journal of African Economies, 30(4), 395–420. https://doi.org/10.1093/jae/ejab009
  4. Ajakaiye, O., & Jerome, A. T. (2021). Structural transformation, infrastructure, and labor markets in West Africa. African Development Review, 33(S1), S37–S55. https://doi.org/10.1111/1467-8268.12528
  5. Almeida, J., & Garcia, R. (2020). Infrastructure and rural labor markets: A case study of Northeast Brazil. World Development, 132, 104985. https://doi.org/10.1016/j.worlddev.2020.104985
  6. Asare, J. K., Tuffour, J. K., & Frimpong, S. (2023). Social infrastructure and inclusive development in Ghana. Development in Practice, 33(2), 172–183. https://doi.org/10.1080/09614524.2022.2101507
  7. Aschauer, D. A. (2019). Is public expenditure productive? Reassessing infrastructure's role in U.S. economic growth. Public Policy Review, 45(1), 27–48.
  8. Barasa, S., & Odongo, T. (2019). Infrastructure development and informality in Kenya: An empirical assessment. Journal of Development Policy and Practice, 4(1), 20–40. https://doi.org/10.1177/2455133318820225
  9. Boakye, D., & Amoako, C. (2023). Urban infrastructure, informality, and labor transitions in Accra. Cities, 135, 104339. https://doi.org/10.1016/j.cities.2022.104339
  10. Chowdhury, M., & Dey, S. (2023). Electrification and labor force participation in rural Bangladesh: Gender implications. Energy for Sustainable Development, 72, 85–94. https://doi.org/10.1016/j.esd.2023.01.004
  11. De Jong, G., & Verhoef, E. (2021). Urban transport investments and female labor supply: A spatial analysis of the Netherlands. Transportation Research Part A: Policy and Practice, 144, 29–45. https://doi.org/10.1016/j.tra.2020.12.003
  12. Ebohon, O. J., Okoye, A., & Acheampong, R. A. (2021). Infrastructure and regional integration in West Africa: Challenges and opportunities. Habitat International, 118, 102474. https://doi.org/10.1016/j.habitatint.2021.102474
  13. Essandoh-Yeddu, J., Ackom, E., & Obeng, G. Y. (2022). Impact of energy infrastructure on small enterprises in Ghana. Renewable Energy, 187, 1114–1126. https://doi.org/10.1016/j.renene.2022.01.098
  14. International Labour Organization. (2021). Transforming African labour markets through infrastructure. https://www.ilo.org
  15. International Labour Organization. (2023). Informal employment and decent work in West Africa. https://www.ilo.org
  16. International Renewable Energy Agency. (2021). Renewable energy and jobs – Annual review 2021. https://www.irena.org/publications/2021
  17. Kouassi, Y., & Adepoju, A. (2021). Infrastructure and employment generation: A case study of port development in Côte d’Ivoire. African Journal of Economic Policy, 28(1), 51–66.
  18. Krause, M., & Bitter, R. (2022). Regional labor markets and the role of infrastructure: Evidence from Germany. Journal of Regional Science, 62(3), 528–552. https://doi.org/10.1111/jors.12532
  19. Lin, J. Y. (2011). New structural economics: A framework for rethinking development and policy. World Bank Publications.
  20. Mendoza, R., Flores, R., & Tan, M. (2020). Infrastructure and female labor market participation in the Philippines: A panel data approach. Asian Development Policy Review, 8(2), 117–134.
  21. Munnell, A. H. (2020). Infrastructure investment and labor market responsiveness in Canada: Revisiting the productivity hypothesis. Canadian Public Policy, 46(4), 447–460. https://doi.org/10.3138/cpp.2020-017
  22. Ogunleye, E. K., & Olayemi, O. O. (2020). Energy access and productivity in ECOWAS states. Energy Policy, 144, 111663. https://doi.org/10.1016/j.enpol.2020.111663
  23. Organisation for Economic Co-operation and Development. (2020). Infrastructure for sustainable growth and jobs: An OECD perspective. OECD Publishing. https://doi.org/10.1787/9789264313029-en
  24. Rana, S., & Roshan, M. (2021). Energy infrastructure and SME employment in India: An ARDL analysis. Small Business Economics, 57(3), 1101–1119. https://doi.org/10.1007/s11187-020-00352-1
  25. Schultz, T. W. (1961). Investment in human capital. The American Economic Review, 51(1), 1–17.
  26. Toure, B., & Ba, O. (2019). Green energy and employment in Senegal: Assessing the Taiba N’Diaye Wind Farm. Energy Research & Social Science, 55, 47–56. https://doi.org/10.1016/j.erss.2019.05.012
  27. Traoré, S. (2020). Infrastructure and cross-border labor mobility in West Africa: Insights from Mali and Côte d’Ivoire. Journal of African Integration, 5(1), 23–39.
  28. World Bank. (2022). Africa’s infrastructure performance scorecard: Regional diagnostic report. World Bank Group. https://www.worldbank.org

The aim of this study is to perform a structured literature review on the development infrastructure and its impact on labor market efficiency in West Africa with emphasis in the transport and energy sectors from 2010 to 2025. Based on a comprehensive review of peer-reviewed literature, institutional reports, and policy analyses, the review examines infrastructure employment effects through job creation potential, labor mobility, and workforce productivity across nations. Transport infrastructure in turn, reveals the findings, creates short-term construction employment (direct), contributes to trade facilitation and by extension port-related jobs (indirect short term) and enables greater geographic access to labour markets. On the other hand, energy infrastructure—grid development or geothermal/substation projects create long term employment via building industrial capability, adding exports, boosting SME growth and supporting human capital formation. At the same time, this research also points out major impediments to the development of infrastructure-related labor markets, flagging up skill mismatches, spatial disparities and fragmented policy coordination. This is demonstrated through case examples from Nigeria, Ghana, Côte d'Ivoire and Senegal showing the transformative possibilities and structural constraints of infrastructure-led employment strategies in the region. Related: The study suggests more synchronization between infrastructure planning and national labor and education policies, the promotion of labor-intensive models, gender-inclusive practices, regional integration and targeted human capital development. They are important for infrastructure to ensure its function as a driver of sustainable and inclusive economic growth in West Africa.

Keywords : Infrastructure Development, Labor Market Efficiency, Transport Sector, Energy Sector, Employment, Human Capital, West Africa, Sectoral Analysis.

CALL FOR PAPERS


Paper Submission Last Date
30 - November - 2025

Video Explanation for Published paper

Never miss an update from Papermashup

Get notified about the latest tutorials and downloads.

Subscribe by Email

Get alerts directly into your inbox after each post and stay updated.
Subscribe
OR

Subscribe by RSS

Add our RSS to your feedreader to get regular updates from us.
Subscribe