The Effects of Infrastructure Development on Growth and Income Distribution
The authors provide an empirical evaluation of the impact of infrastructure development on economic growth and income distribution using a large panel data set encompassing over 100 countries and spanning the years 1960-2000. The empirical strategy...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, D.C.
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2004/09/5138675/effects-infrastructure-development-growth-income-distribution http://hdl.handle.net/10986/14136 |
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okr-10986-141362021-04-23T14:03:21Z The Effects of Infrastructure Development on Growth and Income Distribution Calderón, César Servén, Luis ACCESS TO INFRASTRUCTURE BOARDS OF DIRECTORS CONSOLIDATION ECONOMIC DEVELOPMENT ECONOMIC GROWTH ELECTRICITY EMPLOYMENT EXPENDITURES FINANCIAL SYSTEMS GOVERNMENT SPENDING HUMAN CAPITAL INCOME DISTRIBUTION INFLATION INFRASTRUCTURE QUALITY INFRASTRUCTURE SERVICES MORTALITY POPULATION DENSITY PRESENT VALUE PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PRIVATIZATION PRODUCTIVITY PROVISION OF INFRASTRUCTURE PUBLIC EXPENDITURE PUBLIC GOODS PUBLIC INFRASTRUCTURE PUBLIC INVESTMENT PUBLIC SECTOR PUBLIC SECTOR EMPLOYMENT PUBLIC UTILITIES RAILWAYS ROADS SANITATION SUPPLIERS TELECOMMUNICATIONS TRANSACTION COSTS TRANSPORT TRANSPORTATION URBAN POPULATION URBANIZATION WATER SERVICES GROWTH PATTERNS The authors provide an empirical evaluation of the impact of infrastructure development on economic growth and income distribution using a large panel data set encompassing over 100 countries and spanning the years 1960-2000. The empirical strategy involves the estimation of simple equations for GDP growth and conventional inequality measures, augmented to include, among the regressors, infrastructure quantity and quality indicators, in addition to standard controls. To account for the potential endogeneity of infrastructure (as well as that of other regressors), the authors use a variety of generalized-method-of-moments (GMM) estimators based on both internal and external instruments and report results using both disaggregated and synthetic measures of infrastructure quantity and quality. The two robust results are: (1) growth is positively affected by the stock of infrastructure assets, and (2) income inequality declines with higher infrastructure quantity and quality. A variety of specification tests suggests that these results do capture the causal impact of the exogenous component of infrastructure quantity and quality on growth and inequality. These two results combined suggest that infrastructure development can be highly effective to combat poverty. Furthermore, illustrative simulations for Latin American countries suggest that these impacts are economically quite significant, and highlight the growth acceleration and inequality reduction that would result from increased availability, and quality of infrastructure. 2013-06-24T14:13:12Z 2013-06-24T14:13:12Z 2004-09 http://documents.worldbank.org/curated/en/2004/09/5138675/effects-infrastructure-development-growth-income-distribution http://hdl.handle.net/10986/14136 English en_US Policy Research Working Paper;No.3400 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCESS TO INFRASTRUCTURE BOARDS OF DIRECTORS CONSOLIDATION ECONOMIC DEVELOPMENT ECONOMIC GROWTH ELECTRICITY EMPLOYMENT EXPENDITURES FINANCIAL SYSTEMS GOVERNMENT SPENDING HUMAN CAPITAL INCOME DISTRIBUTION INFLATION INFRASTRUCTURE QUALITY INFRASTRUCTURE SERVICES MORTALITY POPULATION DENSITY PRESENT VALUE PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PRIVATIZATION PRODUCTIVITY PROVISION OF INFRASTRUCTURE PUBLIC EXPENDITURE PUBLIC GOODS PUBLIC INFRASTRUCTURE PUBLIC INVESTMENT PUBLIC SECTOR PUBLIC SECTOR EMPLOYMENT PUBLIC UTILITIES RAILWAYS ROADS SANITATION SUPPLIERS TELECOMMUNICATIONS TRANSACTION COSTS TRANSPORT TRANSPORTATION URBAN POPULATION URBANIZATION WATER SERVICES GROWTH PATTERNS |
| spellingShingle |
ACCESS TO INFRASTRUCTURE BOARDS OF DIRECTORS CONSOLIDATION ECONOMIC DEVELOPMENT ECONOMIC GROWTH ELECTRICITY EMPLOYMENT EXPENDITURES FINANCIAL SYSTEMS GOVERNMENT SPENDING HUMAN CAPITAL INCOME DISTRIBUTION INFLATION INFRASTRUCTURE QUALITY INFRASTRUCTURE SERVICES MORTALITY POPULATION DENSITY PRESENT VALUE PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PRIVATIZATION PRODUCTIVITY PROVISION OF INFRASTRUCTURE PUBLIC EXPENDITURE PUBLIC GOODS PUBLIC INFRASTRUCTURE PUBLIC INVESTMENT PUBLIC SECTOR PUBLIC SECTOR EMPLOYMENT PUBLIC UTILITIES RAILWAYS ROADS SANITATION SUPPLIERS TELECOMMUNICATIONS TRANSACTION COSTS TRANSPORT TRANSPORTATION URBAN POPULATION URBANIZATION WATER SERVICES GROWTH PATTERNS Calderón, César Servén, Luis The Effects of Infrastructure Development on Growth and Income Distribution |
| geographic_facet |
Latin America & Caribbean |
| relation |
Policy Research Working Paper;No.3400 |
| description |
The authors provide an empirical
evaluation of the impact of infrastructure development on
economic growth and income distribution using a large panel
data set encompassing over 100 countries and spanning the
years 1960-2000. The empirical strategy involves the
estimation of simple equations for GDP growth and
conventional inequality measures, augmented to include,
among the regressors, infrastructure quantity and quality
indicators, in addition to standard controls. To account for
the potential endogeneity of infrastructure (as well as that
of other regressors), the authors use a variety of
generalized-method-of-moments (GMM) estimators based on both
internal and external instruments and report results using
both disaggregated and synthetic measures of infrastructure
quantity and quality. The two robust results are: (1) growth
is positively affected by the stock of infrastructure
assets, and (2) income inequality declines with higher
infrastructure quantity and quality. A variety of
specification tests suggests that these results do capture
the causal impact of the exogenous component of
infrastructure quantity and quality on growth and
inequality. These two results combined suggest that
infrastructure development can be highly effective to combat
poverty. Furthermore, illustrative simulations for Latin
American countries suggest that these impacts are
economically quite significant, and highlight the growth
acceleration and inequality reduction that would result from
increased availability, and quality of infrastructure. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Calderón, César Servén, Luis |
| author_facet |
Calderón, César Servén, Luis |
| author_sort |
Calderón, César |
| title |
The Effects of Infrastructure Development on Growth and Income Distribution |
| title_short |
The Effects of Infrastructure Development on Growth and Income Distribution |
| title_full |
The Effects of Infrastructure Development on Growth and Income Distribution |
| title_fullStr |
The Effects of Infrastructure Development on Growth and Income Distribution |
| title_full_unstemmed |
The Effects of Infrastructure Development on Growth and Income Distribution |
| title_sort |
effects of infrastructure development on growth and income distribution |
| publisher |
World Bank, Washington, D.C. |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2004/09/5138675/effects-infrastructure-development-growth-income-distribution http://hdl.handle.net/10986/14136 |
| _version_ |
1764430600440119296 |