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Infrastructure and growth: A survey of macro-econometric research

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  • Välilä, Timo

Abstract

The voluminous macro-econometric research on the link between infrastructure and growth over the past decades has been inconclusive. The heterogeneity of empirical results can be attributed in part to obvious differences in measuring the variables of interest and in specifying and estimating the empirical model. However, macro-econometric analyses of the nexus between infrastructure and growth are also prone to model inaccuracy, caused by the fact that infrastructure is by its very nature a difficult object for empirical study. This paper analyses the particular theoretical and empirical characteristics of infrastructure that lead to model inaccuracy, and it assesses whether this line of empirical research is doomed to inconclusiveness.

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  • Välilä, Timo, 2020. "Infrastructure and growth: A survey of macro-econometric research," Structural Change and Economic Dynamics, Elsevier, vol. 53(C), pages 39-49.
    • Handle: RePEc:eee:streco:v:53:y:2020:i:c:p:39-49
    DOI: 10.1016/j.strueco.2020.01.007
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    More about this item

    Keywords

    Infrastructure; Growth; Econometrics; Model inaccuracy;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection

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