How Much Does Physical Infrastructure Contribute to Economic Growth? An Empirical Analysis

Existing literature on the relationship between infrastructure and economic growth is inconclusive. This study evaluates the contributions to economic growth of three main categories of infrastructure—transport, electricity, and teleco...

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Main Authors: Timilsina, Govinda, Stern, David I., Das, Debasish K.
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2021
Subjects:
Online Access:http://documents.worldbank.org/curated/undefined/553061639760111979/How-Much-Does-Physical-Infrastructure-Contribute-to-Economic-Growth-An-Empirical-Analysis
http://hdl.handle.net/10986/36780
id okr-10986-36780
recordtype oai_dc
spelling okr-10986-367802021-12-24T05:10:40Z How Much Does Physical Infrastructure Contribute to Economic Growth? An Empirical Analysis Timilsina, Govinda Stern, David I. Das, Debasish K. ECONOMIC GROWTH GROWTH DRIVERS INFRASTRUCTURE TRANSPORT INFRASTRUCTURE ELECTRICITY TELECOMMUNICATIONS MOBILE PHONE Existing literature on the relationship between infrastructure and economic growth is inconclusive. This study evaluates the contributions to economic growth of three main categories of infrastructure—transport, electricity, and telecommunications—using data from 87 countries over 1992–2017. Compared with existing studies, this study uses more recent data, includes new types of infrastructure such as mobile phones, and provides separate estimates for developing and developed countries. The pooled mean group estimator, which tests for the weak exogeneity of the infrastructure variables, is employed. The key finding of the study is that an increase in infrastructure, especially electricity generation capacity and telecommunications, has significant positive effects on gross domestic product. Infrastructure has a larger effect in more recent years (1992–2017) than in earlier years (1970–1991), and the effects of infrastructure are higher in developing economies than in industrialized economies. 2021-12-23T15:02:06Z 2021-12-23T15:02:06Z 2021-12 Working Paper http://documents.worldbank.org/curated/undefined/553061639760111979/How-Much-Does-Physical-Infrastructure-Contribute-to-Economic-Growth-An-Empirical-Analysis http://hdl.handle.net/10986/36780 English Policy Research Working Paper;No. 9888 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ECONOMIC GROWTH
GROWTH DRIVERS
INFRASTRUCTURE
TRANSPORT INFRASTRUCTURE
ELECTRICITY
TELECOMMUNICATIONS
MOBILE PHONE
spellingShingle ECONOMIC GROWTH
GROWTH DRIVERS
INFRASTRUCTURE
TRANSPORT INFRASTRUCTURE
ELECTRICITY
TELECOMMUNICATIONS
MOBILE PHONE
Timilsina, Govinda
Stern, David I.
Das, Debasish K.
How Much Does Physical Infrastructure Contribute to Economic Growth? An Empirical Analysis
relation Policy Research Working Paper;No. 9888
description Existing literature on the relationship between infrastructure and economic growth is inconclusive. This study evaluates the contributions to economic growth of three main categories of infrastructure—transport, electricity, and telecommunications—using data from 87 countries over 1992–2017. Compared with existing studies, this study uses more recent data, includes new types of infrastructure such as mobile phones, and provides separate estimates for developing and developed countries. The pooled mean group estimator, which tests for the weak exogeneity of the infrastructure variables, is employed. The key finding of the study is that an increase in infrastructure, especially electricity generation capacity and telecommunications, has significant positive effects on gross domestic product. Infrastructure has a larger effect in more recent years (1992–2017) than in earlier years (1970–1991), and the effects of infrastructure are higher in developing economies than in industrialized economies.
format Working Paper
author Timilsina, Govinda
Stern, David I.
Das, Debasish K.
author_facet Timilsina, Govinda
Stern, David I.
Das, Debasish K.
author_sort Timilsina, Govinda
title How Much Does Physical Infrastructure Contribute to Economic Growth? An Empirical Analysis
title_short How Much Does Physical Infrastructure Contribute to Economic Growth? An Empirical Analysis
title_full How Much Does Physical Infrastructure Contribute to Economic Growth? An Empirical Analysis
title_fullStr How Much Does Physical Infrastructure Contribute to Economic Growth? An Empirical Analysis
title_full_unstemmed How Much Does Physical Infrastructure Contribute to Economic Growth? An Empirical Analysis
title_sort how much does physical infrastructure contribute to economic growth? an empirical analysis
publisher World Bank, Washington, DC
publishDate 2021
url http://documents.worldbank.org/curated/undefined/553061639760111979/How-Much-Does-Physical-Infrastructure-Contribute-to-Economic-Growth-An-Empirical-Analysis
http://hdl.handle.net/10986/36780
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