Does increasing infrastructure also increase the resource output of the province?
No. Some players have claimed that in a handful of low-infrastructure (eg. 20), high resource-yield provinces, you can increase resource yield by increasing infrastructure, but this has never been verified. Note that the machine tool techs increase both IC and resource production, so when players see resource increases, it would more likely be due to the machine tool tech rather than to increasing infrastructure. There is very little you can do to increase resource extraction except to liberate puppets since puppets are limited to 1000 of each resource and give their master the excess. A formula explaining the resource extraction parameters is given in this thread: Formula for resources from non-national provinces. Resource extraction can go down due to strategic bombing and to battle damage; pause over one of the resource icons to see the current and maximum %.
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