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Does Infrastructure Alleviates Poverty in Developing Countries?

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  • Seetanah, B.
  • Ramessur, S.
  • Rojid, S.
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    Abstract

    Infrastructure has largely been ignored in the assessment of poverty in developing countries. This paper attempts to make some contribution in the establishing the ingredients to alleviate poverty by exploring the impact of infrastructure on the urban poor in sample of 20 developing countries, over the period 1980-2005. The results from the static fixed effect and also the dynamic GMM model both reveal that transport and communication infrastructure are indeed an efficient tool in fighting urban poverty. Panel causality analysis also validated the results. Hence the main policy concern is how to improve access of the urban poor to such an asset.

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    File URL: http://www.usc.es/economet/reviews/ijaeqs922.pdf
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    Bibliographic Info

    Article provided by Euro-American Association of Economic Development in its journal International Journal of Applied Econometrics and Quantitative Studies .

    Volume (Year): 9 (2009)
    Issue (Month): 2 ()
    Pages:

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    Handle: RePEc:eaa:ijaeqs:v:9:y2009:i:1_9

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    Web page: http://www.usc.es/economet/eaa.htm

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    Related research

    Keywords: Urban Poverty; Infrastructure; Developing Countries;

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    1. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    2. Stefan Dercon & Pramila Krishnan, 1998. "Changes in Poverty in Rural Ethiopia 1989-1995: Measurement, Robustness Tests and Decomposition," Center for Economic Studies - Discussion papers ces9819, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
    3. Guillermo Larraín & Helmut Reisen & Julia von Maltzan, 1997. "Emerging Market Risk and Sovereign Credit Ratings," OECD Development Centre Working Papers 124, OECD Publishing.
    4. Canning, David & Bennathan, Esra, 2000. "The social rate of return on infrastructure investments," Policy Research Working Paper Series 2390, The World Bank.
    5. Escobal, Javier, 2001. "The Determinants of Nonfarm Income Diversification in Rural Peru," World Development, Elsevier, vol. 29(3), pages 497-508, March.
    6. Jacoby, Hanan C, 2000. "Access to Markets and the Benefits of Rural Roads," Economic Journal, Royal Economic Society, vol. 110(465), pages 713-37, July.
    7. Van der Walle, Dominique & Cratty, Dorothyjean, 2003. "Is the emerging nonfarm market economy the route out of poverty in Vietnam?," Policy Research Working Paper Series 2950, The World Bank.
    8. Venet, Baptiste & Hurlin, Christophe, 2001. "Granger Causality Tests in Panel Data Models with Fixed Coefficients," Economics Papers from University Paris Dauphine 123456789/6159, Paris Dauphine University.
    9. Arsenio M. Balisacan & Ernesto M. Pernia, 2001. "Probing Beneath Cross-National Averages: Poverty, Inequality, and Growth in the Philippines," UP School of Economics Discussion Papers 200111, University of the Philippines School of Economics.
    10. Ravallion, Martin & Datt, Gaurav, 1996. "How Important to India's Poor Is the Sectoral Composition of Economic Growth?," World Bank Economic Review, World Bank Group, vol. 10(1), pages 1-25, January.
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