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The Role of Infrastructure in Promoting Economic Growth in Iran

Author

Listed:
  • Sakineh Sojoodi

    (Ph.D. Candidate in Economics, University of Tabriz)

  • Fakhri Mohseni Zonuzi

    (Master of Economics)

  • Nasim Mehin Aslani Nia

    (Ph.D. Candidate in Economics, University of Tabriz)

Abstract

Lack of infrastructure continues to be a key obstacle to growth and development in most of low-income countries. In recent years, however, the role of infrastructure has received increased attention. The goal of this paper is to provide an empirical evaluation of the role of infrastructure on economic growth of Iran over the period of 1985 to 2008. To do this, we have employed the autoregressive distributed lag (ARDL) framework and introduced Infrastructure capital as an input into aggregate production, because it comes at the cost of reduced investment in other types of capital. Our findings indicate that transportation facilities distinctively length of railway and roadway, also telecommunication infrastructure (fixed phone line) have positive and significant impact on economic growth of Iran but electricity production capacity doesn’t have significant impact on per capita output growth.

Suggested Citation

  • Sakineh Sojoodi & Fakhri Mohseni Zonuzi & Nasim Mehin Aslani Nia, 2012. "The Role of Infrastructure in Promoting Economic Growth in Iran," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 17(2), pages 111-132, spring.
    • Handle: RePEc:eut:journl:v:17:y:2012:i:2:p:111
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    References listed on IDEAS

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    4. William Easterly & Luis Servén, 2003. "The Limits of Stabilization : Infrastructure, Public Deficits, and Growth in Latin America," World Bank Publications - Books, The World Bank Group, number 14456, December.
    5. Barro, Robert J, 1990. "Government Spending in a Simple Model of Endogenous Growth," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 103-126, October.
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    Cited by:

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    2. Strike Mbulawa, 2017. "The Impact Of Economic Infrastructure On Long Term Economic Growth In Botswana," Journal of Smart Economic Growth, , vol. 2(1), pages 15-33, March.

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