Network Effects of the Productivity of Infrastructure in Developing Countries

Using panel data models, the author examines the threshold effects of the productivity of infrastructure investment in developing countries. He considers various specifications of an augmented production function that allow for endogenous thresholds. More precisely, these specifications are tested i...

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Main Author:	Hurlin, Christophe
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	BASE YEAR BENCHMARK COMPONENTS CONSTANT RETURNS TO SCALE ECONOMIC SYSTEMS ELASTICITY ELECTRICITY EQUIPMENT GDP GDP PER CAPITA HUMAN CAPITAL INCOME INVENTORY MARGINAL PRODUCT MARGINAL PRODUCTIVITY MIDDLE INCOME COUNTRIES NETWORKS OPTIMIZATION PER CAPITA INCOME PRIVATE CAPITAL PRIVATE INVESTMENTS PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY PUBLIC PUBLIC INVESTMENT PUBLIC INVESTMENTS PUBLIC SECTOR PURCHASING POWER RATE OF RETURN RATES OF RETURN REAL GDP ROADS STOCKS TELECOMMUNICATIONS TOTAL FACTOR PRODUCTIVITY
Online Access:	http://documents.worldbank.org/curated/en/2006/01/6523128/network-effects-productivity-infrastructure-developing-countries http://hdl.handle.net/10986/8836

id	okr-10986-8836
recordtype	oai_dc
spelling	okr-10986-88362021-04-23T14:02:40Z Network Effects of the Productivity of Infrastructure in Developing Countries Hurlin, Christophe BASE YEAR BENCHMARK COMPONENTS CONSTANT RETURNS TO SCALE ECONOMIC SYSTEMS ELASTICITY ELECTRICITY EQUIPMENT GDP GDP PER CAPITA HUMAN CAPITAL INCOME INVENTORY MARGINAL PRODUCT MARGINAL PRODUCTIVITY MIDDLE INCOME COUNTRIES NETWORKS OPTIMIZATION PER CAPITA INCOME PRIVATE CAPITAL PRIVATE INVESTMENTS PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY PUBLIC PUBLIC INVESTMENT PUBLIC INVESTMENTS PUBLIC SECTOR PURCHASING POWER RATE OF RETURN RATES OF RETURN REAL GDP ROADS STOCKS TELECOMMUNICATIONS TOTAL FACTOR PRODUCTIVITY Using panel data models, the author examines the threshold effects of the productivity of infrastructure investment in developing countries. He considers various specifications of an augmented production function that allow for endogenous thresholds. More precisely, these specifications are tested in a panel threshold regression model. The author's main robust result is the presence of strong threshold effects in the relationship between output and private and public inputs. Whatever the transition mechanism used, the testing procedures lead to strong rejection of the linearity of this relationship. In particular, the productivity of infrastructure investment generally exhibits some network effects. When the available stock of infrastructure is very low, investment in this sector has the same productivity as noninfrastructure investment. On the contrary, when a minimum network is available, the marginal productivity of infrastructure investment is generally largely greater than the productivity of other investment. Finally, when the main network is achieved, its marginal productivity becomes similar to the productivity of other investment. 2012-06-22T19:35:16Z 2012-06-22T19:35:16Z 2006-01 http://documents.worldbank.org/curated/en/2006/01/6523128/network-effects-productivity-infrastructure-developing-countries http://hdl.handle.net/10986/8836 English Policy Research Working Paper; No. 3808 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, 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
topic	BASE YEAR BENCHMARK COMPONENTS CONSTANT RETURNS TO SCALE ECONOMIC SYSTEMS ELASTICITY ELECTRICITY EQUIPMENT GDP GDP PER CAPITA HUMAN CAPITAL INCOME INVENTORY MARGINAL PRODUCT MARGINAL PRODUCTIVITY MIDDLE INCOME COUNTRIES NETWORKS OPTIMIZATION PER CAPITA INCOME PRIVATE CAPITAL PRIVATE INVESTMENTS PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY PUBLIC PUBLIC INVESTMENT PUBLIC INVESTMENTS PUBLIC SECTOR PURCHASING POWER RATE OF RETURN RATES OF RETURN REAL GDP ROADS STOCKS TELECOMMUNICATIONS TOTAL FACTOR PRODUCTIVITY
spellingShingle	BASE YEAR BENCHMARK COMPONENTS CONSTANT RETURNS TO SCALE ECONOMIC SYSTEMS ELASTICITY ELECTRICITY EQUIPMENT GDP GDP PER CAPITA HUMAN CAPITAL INCOME INVENTORY MARGINAL PRODUCT MARGINAL PRODUCTIVITY MIDDLE INCOME COUNTRIES NETWORKS OPTIMIZATION PER CAPITA INCOME PRIVATE CAPITAL PRIVATE INVESTMENTS PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY PUBLIC PUBLIC INVESTMENT PUBLIC INVESTMENTS PUBLIC SECTOR PURCHASING POWER RATE OF RETURN RATES OF RETURN REAL GDP ROADS STOCKS TELECOMMUNICATIONS TOTAL FACTOR PRODUCTIVITY Hurlin, Christophe Network Effects of the Productivity of Infrastructure in Developing Countries
relation	Policy Research Working Paper; No. 3808
description	Using panel data models, the author examines the threshold effects of the productivity of infrastructure investment in developing countries. He considers various specifications of an augmented production function that allow for endogenous thresholds. More precisely, these specifications are tested in a panel threshold regression model. The author's main robust result is the presence of strong threshold effects in the relationship between output and private and public inputs. Whatever the transition mechanism used, the testing procedures lead to strong rejection of the linearity of this relationship. In particular, the productivity of infrastructure investment generally exhibits some network effects. When the available stock of infrastructure is very low, investment in this sector has the same productivity as noninfrastructure investment. On the contrary, when a minimum network is available, the marginal productivity of infrastructure investment is generally largely greater than the productivity of other investment. Finally, when the main network is achieved, its marginal productivity becomes similar to the productivity of other investment.
format	Publications & Research :: Policy Research Working Paper
author	Hurlin, Christophe
author_facet	Hurlin, Christophe
author_sort	Hurlin, Christophe
title	Network Effects of the Productivity of Infrastructure in Developing Countries
title_short	Network Effects of the Productivity of Infrastructure in Developing Countries
title_full	Network Effects of the Productivity of Infrastructure in Developing Countries
title_fullStr	Network Effects of the Productivity of Infrastructure in Developing Countries
title_full_unstemmed	Network Effects of the Productivity of Infrastructure in Developing Countries
title_sort	network effects of the productivity of infrastructure in developing countries
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2006/01/6523128/network-effects-productivity-infrastructure-developing-countries http://hdl.handle.net/10986/8836
_version_	1764405748423458816

Network Effects of the Productivity of Infrastructure in Developing Countries

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