Infrastructure, Growth, and Inequality : An Overview

Academics and policy makers have long considered an adequate supply of infrastructure services to be essential for economic development. This paper reviews recent theoretical and empirical literature on the effects of infrastructure development on...

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Main Authors:	Calderon, Cesar, Serven, Luis
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank Group, Washington, DC 2014
Subjects:	ACCESS REGULATION ACCOUNTING AFFORDABILITY OF INFRASTRUCTURE SERVICES AGRICULTURE ASSETS CAPITAL ACCUMULATION CAPITAL EXPENDITURE CAPITAL MARKETS CAPITAL STOCK COMPARATIVE ADVANTAGE CONGESTION CONSUMERS COST OF CAPITAL DEFICITS DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISTRIBUTION OF INCOME DRIVERS DYNAMIC ANALYSIS ECONOMETRICS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC LIFE ECONOMIC REFORM ECONOMIC SURVEYS EIB ELASTICITIES ELASTICITY ELASTICITY OF SUBSTITUTION ELECTRICITY EMERGING MARKETS EMPLOYMENT ENERGY EFFICIENCY EXOGENOUS FACTORS EXTERNALITIES FINANCIAL INSTITUTIONS FINANCING OF INFRASTRUCTURE FISCAL POLICY FIXED INPUTS FUEL GDP GOVERNMENT INVESTMENT GOVERNMENT SPENDING GROWTH MODEL GROWTH POLICIES GROWTH RATE HIGHWAY HIGHWAYS HUMAN CAPITAL INCOME DISTRIBUTION INCOME GROUPS INCOME LEVELS INEQUALITY MEASURES INFRASTRUCTURE ASSETS INFRASTRUCTURE CONGESTION INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE FINANCING INFRASTRUCTURE INVESTMENT INFRASTRUCTURE POLICIES INFRASTRUCTURE PROVISION INFRASTRUCTURE REFORM INFRASTRUCTURE REHABILITATION INFRASTRUCTURE SECTOR INFRASTRUCTURE SERVICES INFRASTRUCTURE SPENDING INFRASTRUCTURE SUPPLY INSURANCE INVENTORY LEVIES LIVING STANDARDS MACROECONOMICS MARGINAL COSTS MARGINAL PRODUCTIVITY MARKET DISTORTIONS METROPOLITAN AREAS MOBILITY OPEN ACCESS PENALTIES PER CAPITA INCOME POLITICAL ECONOMY POOR HOUSEHOLDS POSITIVE EFFECTS POWER POWER SECTOR PRIVATE CAPITAL PRIVATE PROVIDERS PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PRIVATIZATION PRODUCTION COSTS PRODUCTION FUNCTION PRODUCTION INPUTS PRODUCTIVITY PRODUCTIVITY GROWTH PROFIT FUNCTIONS PROVISION OF INFRASTRUCTURE PUBLIC PUBLIC ECONOMICS PUBLIC ENTERPRISES PUBLIC EXPENDITURE PUBLIC FINANCE PUBLIC GOOD PUBLIC GOODS PUBLIC INFRASTRUCTURE PUBLIC INVESTMENT PUBLIC INVESTMENT IN EDUCATION PUBLIC PROCUREMENT PUBLIC REVENUES PUBLIC SECTOR PUBLIC SERVICES PUBLIC SPENDING PUBLIC WORKS RAILWAYS REAL GDP REAL INTEREST RATE REGIONAL INFRASTRUCTURE REGRESSION ANALYSIS RETURN ON INVESTMENT ROAD ROAD BUILDING ROAD IMPROVEMENT ROAD NETWORK ROAD QUALITY ROAD TRANSPORT ROADS ROUTES RURAL INFRASTRUCTURE RURAL ROADS SANITATION TAX TAXATION TELECOMMUNICATIONS TELECOMMUNICATIONS REFORM TELECOMMUNICATIONS SERVICES TELEPHONE NETWORKS TOLL TOLL ROADS TRANSPORT TRANSPORT INFRASTRUCTURE TRANSPORT SERVICES TRANSPORTATION TRANSPORTATION SYSTEMS URBAN ECONOMICS UTILITIES UTILITY PRIVATIZATION UTILITY SERVICES VARIABLE INPUTS WAGES WATER SERVICES WEALTH
Online Access:	http://documents.worldbank.org/curated/en/2014/09/20210994/infrastructure-growth-inequality-overview http://hdl.handle.net/10986/20365

id	okr-10986-20365
recordtype	oai_dc
spelling	okr-10986-203652021-04-23T14:03:55Z Infrastructure, Growth, and Inequality : An Overview Calderon, Cesar Serven, Luis ACCESS REGULATION ACCOUNTING AFFORDABILITY OF INFRASTRUCTURE SERVICES AGRICULTURE ASSETS CAPITAL ACCUMULATION CAPITAL EXPENDITURE CAPITAL MARKETS CAPITAL STOCK COMPARATIVE ADVANTAGE CONGESTION CONSUMERS COST OF CAPITAL DEFICITS DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISTRIBUTION OF INCOME DRIVERS DYNAMIC ANALYSIS ECONOMETRICS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC LIFE ECONOMIC REFORM ECONOMIC SURVEYS EIB ELASTICITIES ELASTICITY ELASTICITY OF SUBSTITUTION ELECTRICITY EMERGING MARKETS EMPLOYMENT ENERGY EFFICIENCY EXOGENOUS FACTORS EXTERNALITIES FINANCIAL INSTITUTIONS FINANCING OF INFRASTRUCTURE FISCAL POLICY FIXED INPUTS FUEL GDP GOVERNMENT INVESTMENT GOVERNMENT SPENDING GROWTH MODEL GROWTH POLICIES GROWTH RATE HIGHWAY HIGHWAYS HUMAN CAPITAL INCOME DISTRIBUTION INCOME GROUPS INCOME LEVELS INEQUALITY MEASURES INFRASTRUCTURE ASSETS INFRASTRUCTURE CONGESTION INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE FINANCING INFRASTRUCTURE INVESTMENT INFRASTRUCTURE POLICIES INFRASTRUCTURE PROVISION INFRASTRUCTURE REFORM INFRASTRUCTURE REHABILITATION INFRASTRUCTURE SECTOR INFRASTRUCTURE SERVICES INFRASTRUCTURE SPENDING INFRASTRUCTURE SUPPLY INSURANCE INVENTORY LEVIES LIVING STANDARDS MACROECONOMICS MARGINAL COSTS MARGINAL PRODUCTIVITY MARKET DISTORTIONS METROPOLITAN AREAS MOBILITY OPEN ACCESS PENALTIES PER CAPITA INCOME POLITICAL ECONOMY POOR HOUSEHOLDS POSITIVE EFFECTS POWER POWER SECTOR PRIVATE CAPITAL PRIVATE PROVIDERS PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PRIVATIZATION PRODUCTION COSTS PRODUCTION FUNCTION PRODUCTION INPUTS PRODUCTIVITY PRODUCTIVITY GROWTH PROFIT FUNCTIONS PROVISION OF INFRASTRUCTURE PUBLIC PUBLIC ECONOMICS PUBLIC ENTERPRISES PUBLIC EXPENDITURE PUBLIC FINANCE PUBLIC GOOD PUBLIC GOODS PUBLIC INFRASTRUCTURE PUBLIC INVESTMENT PUBLIC INVESTMENT IN EDUCATION PUBLIC PROCUREMENT PUBLIC REVENUES PUBLIC SECTOR PUBLIC SERVICES PUBLIC SPENDING PUBLIC WORKS RAILWAYS REAL GDP REAL INTEREST RATE REGIONAL INFRASTRUCTURE REGRESSION ANALYSIS RETURN ON INVESTMENT ROAD ROAD BUILDING ROAD IMPROVEMENT ROAD NETWORK ROAD QUALITY ROAD TRANSPORT ROADS ROUTES RURAL INFRASTRUCTURE RURAL ROADS SANITATION TAX TAXATION TELECOMMUNICATIONS TELECOMMUNICATIONS REFORM TELECOMMUNICATIONS SERVICES TELEPHONE NETWORKS TOLL TOLL ROADS TRANSPORT TRANSPORT INFRASTRUCTURE TRANSPORT SERVICES TRANSPORTATION TRANSPORTATION SYSTEMS URBAN ECONOMICS UTILITIES UTILITY PRIVATIZATION UTILITY SERVICES VARIABLE INPUTS WAGES WATER SERVICES WEALTH Academics and policy makers have long considered an adequate supply of infrastructure services to be essential for economic development. This paper reviews recent theoretical and empirical literature on the effects of infrastructure development on growth and income distribution. The theoretical literature has employed a variety of analytical settings regarding the drivers of income growth, the degree to which infrastructure represents a public or a private good, and the extent of market distortions, notably in capital markets. In turn, the empirical literature has used various econometric methodologies on time-series and cross-section macro and microeconomic data to test for the effects of infrastructure development. However, these empirical tests face challenging issues of measurement, identification, and heterogeneity. Overall, the literature finds positive effects of infrastructure development on income growth and, more tentatively, on distributive equity. Still, the precise mechanisms through which these effects accrue, and their full impact on welfare, remain relatively unexplored. 2014-10-06T20:05:45Z 2014-10-06T20:05:45Z 2014-09 http://documents.worldbank.org/curated/en/2014/09/20210994/infrastructure-growth-inequality-overview http://hdl.handle.net/10986/20365 English en_US Policy Research Working Paper;No. 7034 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Group, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
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 REGULATION ACCOUNTING AFFORDABILITY OF INFRASTRUCTURE SERVICES AGRICULTURE ASSETS CAPITAL ACCUMULATION CAPITAL EXPENDITURE CAPITAL MARKETS CAPITAL STOCK COMPARATIVE ADVANTAGE CONGESTION CONSUMERS COST OF CAPITAL DEFICITS DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISTRIBUTION OF INCOME DRIVERS DYNAMIC ANALYSIS ECONOMETRICS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC LIFE ECONOMIC REFORM ECONOMIC SURVEYS EIB ELASTICITIES ELASTICITY ELASTICITY OF SUBSTITUTION ELECTRICITY EMERGING MARKETS EMPLOYMENT ENERGY EFFICIENCY EXOGENOUS FACTORS EXTERNALITIES FINANCIAL INSTITUTIONS FINANCING OF INFRASTRUCTURE FISCAL POLICY FIXED INPUTS FUEL GDP GOVERNMENT INVESTMENT GOVERNMENT SPENDING GROWTH MODEL GROWTH POLICIES GROWTH RATE HIGHWAY HIGHWAYS HUMAN CAPITAL INCOME DISTRIBUTION INCOME GROUPS INCOME LEVELS INEQUALITY MEASURES INFRASTRUCTURE ASSETS INFRASTRUCTURE CONGESTION INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE FINANCING INFRASTRUCTURE INVESTMENT INFRASTRUCTURE POLICIES INFRASTRUCTURE PROVISION INFRASTRUCTURE REFORM INFRASTRUCTURE REHABILITATION INFRASTRUCTURE SECTOR INFRASTRUCTURE SERVICES INFRASTRUCTURE SPENDING INFRASTRUCTURE SUPPLY INSURANCE INVENTORY LEVIES LIVING STANDARDS MACROECONOMICS MARGINAL COSTS MARGINAL PRODUCTIVITY MARKET DISTORTIONS METROPOLITAN AREAS MOBILITY OPEN ACCESS PENALTIES PER CAPITA INCOME POLITICAL ECONOMY POOR HOUSEHOLDS POSITIVE EFFECTS POWER POWER SECTOR PRIVATE CAPITAL PRIVATE PROVIDERS PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PRIVATIZATION PRODUCTION COSTS PRODUCTION FUNCTION PRODUCTION INPUTS PRODUCTIVITY PRODUCTIVITY GROWTH PROFIT FUNCTIONS PROVISION OF INFRASTRUCTURE PUBLIC PUBLIC ECONOMICS PUBLIC ENTERPRISES PUBLIC EXPENDITURE PUBLIC FINANCE PUBLIC GOOD PUBLIC GOODS PUBLIC INFRASTRUCTURE PUBLIC INVESTMENT PUBLIC INVESTMENT IN EDUCATION PUBLIC PROCUREMENT PUBLIC REVENUES PUBLIC SECTOR PUBLIC SERVICES PUBLIC SPENDING PUBLIC WORKS RAILWAYS REAL GDP REAL INTEREST RATE REGIONAL INFRASTRUCTURE REGRESSION ANALYSIS RETURN ON INVESTMENT ROAD ROAD BUILDING ROAD IMPROVEMENT ROAD NETWORK ROAD QUALITY ROAD TRANSPORT ROADS ROUTES RURAL INFRASTRUCTURE RURAL ROADS SANITATION TAX TAXATION TELECOMMUNICATIONS TELECOMMUNICATIONS REFORM TELECOMMUNICATIONS SERVICES TELEPHONE NETWORKS TOLL TOLL ROADS TRANSPORT TRANSPORT INFRASTRUCTURE TRANSPORT SERVICES TRANSPORTATION TRANSPORTATION SYSTEMS URBAN ECONOMICS UTILITIES UTILITY PRIVATIZATION UTILITY SERVICES VARIABLE INPUTS WAGES WATER SERVICES WEALTH
spellingShingle	ACCESS REGULATION ACCOUNTING AFFORDABILITY OF INFRASTRUCTURE SERVICES AGRICULTURE ASSETS CAPITAL ACCUMULATION CAPITAL EXPENDITURE CAPITAL MARKETS CAPITAL STOCK COMPARATIVE ADVANTAGE CONGESTION CONSUMERS COST OF CAPITAL DEFICITS DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISTRIBUTION OF INCOME DRIVERS DYNAMIC ANALYSIS ECONOMETRICS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC LIFE ECONOMIC REFORM ECONOMIC SURVEYS EIB ELASTICITIES ELASTICITY ELASTICITY OF SUBSTITUTION ELECTRICITY EMERGING MARKETS EMPLOYMENT ENERGY EFFICIENCY EXOGENOUS FACTORS EXTERNALITIES FINANCIAL INSTITUTIONS FINANCING OF INFRASTRUCTURE FISCAL POLICY FIXED INPUTS FUEL GDP GOVERNMENT INVESTMENT GOVERNMENT SPENDING GROWTH MODEL GROWTH POLICIES GROWTH RATE HIGHWAY HIGHWAYS HUMAN CAPITAL INCOME DISTRIBUTION INCOME GROUPS INCOME LEVELS INEQUALITY MEASURES INFRASTRUCTURE ASSETS INFRASTRUCTURE CONGESTION INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE FINANCING INFRASTRUCTURE INVESTMENT INFRASTRUCTURE POLICIES INFRASTRUCTURE PROVISION INFRASTRUCTURE REFORM INFRASTRUCTURE REHABILITATION INFRASTRUCTURE SECTOR INFRASTRUCTURE SERVICES INFRASTRUCTURE SPENDING INFRASTRUCTURE SUPPLY INSURANCE INVENTORY LEVIES LIVING STANDARDS MACROECONOMICS MARGINAL COSTS MARGINAL PRODUCTIVITY MARKET DISTORTIONS METROPOLITAN AREAS MOBILITY OPEN ACCESS PENALTIES PER CAPITA INCOME POLITICAL ECONOMY POOR HOUSEHOLDS POSITIVE EFFECTS POWER POWER SECTOR PRIVATE CAPITAL PRIVATE PROVIDERS PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PRIVATIZATION PRODUCTION COSTS PRODUCTION FUNCTION PRODUCTION INPUTS PRODUCTIVITY PRODUCTIVITY GROWTH PROFIT FUNCTIONS PROVISION OF INFRASTRUCTURE PUBLIC PUBLIC ECONOMICS PUBLIC ENTERPRISES PUBLIC EXPENDITURE PUBLIC FINANCE PUBLIC GOOD PUBLIC GOODS PUBLIC INFRASTRUCTURE PUBLIC INVESTMENT PUBLIC INVESTMENT IN EDUCATION PUBLIC PROCUREMENT PUBLIC REVENUES PUBLIC SECTOR PUBLIC SERVICES PUBLIC SPENDING PUBLIC WORKS RAILWAYS REAL GDP REAL INTEREST RATE REGIONAL INFRASTRUCTURE REGRESSION ANALYSIS RETURN ON INVESTMENT ROAD ROAD BUILDING ROAD IMPROVEMENT ROAD NETWORK ROAD QUALITY ROAD TRANSPORT ROADS ROUTES RURAL INFRASTRUCTURE RURAL ROADS SANITATION TAX TAXATION TELECOMMUNICATIONS TELECOMMUNICATIONS REFORM TELECOMMUNICATIONS SERVICES TELEPHONE NETWORKS TOLL TOLL ROADS TRANSPORT TRANSPORT INFRASTRUCTURE TRANSPORT SERVICES TRANSPORTATION TRANSPORTATION SYSTEMS URBAN ECONOMICS UTILITIES UTILITY PRIVATIZATION UTILITY SERVICES VARIABLE INPUTS WAGES WATER SERVICES WEALTH Calderon, Cesar Serven, Luis Infrastructure, Growth, and Inequality : An Overview
relation	Policy Research Working Paper;No. 7034
description	Academics and policy makers have long considered an adequate supply of infrastructure services to be essential for economic development. This paper reviews recent theoretical and empirical literature on the effects of infrastructure development on growth and income distribution. The theoretical literature has employed a variety of analytical settings regarding the drivers of income growth, the degree to which infrastructure represents a public or a private good, and the extent of market distortions, notably in capital markets. In turn, the empirical literature has used various econometric methodologies on time-series and cross-section macro and microeconomic data to test for the effects of infrastructure development. However, these empirical tests face challenging issues of measurement, identification, and heterogeneity. Overall, the literature finds positive effects of infrastructure development on income growth and, more tentatively, on distributive equity. Still, the precise mechanisms through which these effects accrue, and their full impact on welfare, remain relatively unexplored.
format	Publications & Research :: Policy Research Working Paper
author	Calderon, Cesar Serven, Luis
author_facet	Calderon, Cesar Serven, Luis
author_sort	Calderon, Cesar
title	Infrastructure, Growth, and Inequality : An Overview
title_short	Infrastructure, Growth, and Inequality : An Overview
title_full	Infrastructure, Growth, and Inequality : An Overview
title_fullStr	Infrastructure, Growth, and Inequality : An Overview
title_full_unstemmed	Infrastructure, Growth, and Inequality : An Overview
title_sort	infrastructure, growth, and inequality : an overview
publisher	World Bank Group, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2014/09/20210994/infrastructure-growth-inequality-overview http://hdl.handle.net/10986/20365
_version_	1764445161344991232

Infrastructure, Growth, and Inequality : An Overview

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