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:	ECONOMIC GROWTH GROWTH DRIVERS INFRASTRUCTURE TRANSPORT INFRASTRUCTURE ELECTRICITY TELECOMMUNICATIONS MOBILE PHONE
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
_version_	1764485880807948288

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

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