How Productive Is Infrastructure? A New Approach and Evidence from Rural India
AbstractThere have been competing arguments about the effect of public infrastructure on productivity. Level-based and debate-based regressions often lead to different estimates. To help reconcile this difference, this article applies the GMM method to first test for causality to check for length of lagged relationships and the existence of reverse causality before specifying a final model and deciding the estimation procedure. This approach is illustrated using a panel data set for India. The results show that infrastructure development in India is productive, providing supporting evidence to reverse the trend of declining investment in rural infrastructure. Copyright 2004, Oxford University Press.
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Bibliographic InfoArticle provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.
Volume (Year): 86 (2004)
Issue (Month): 2 ()
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Other versions of this item:
- Zhang, Xiaobo & Fan, Shenggen, 2001. "How productive is infrastructure?: new approach and evidence from rural India," EPTD discussion papers 84, International Food Policy Research Institute (IFPRI).
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- Place, Frank & Otsuka, Keijiro, 1997.
"Population pressure, land tenure, and tree resource management in Uganda:,"
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24, International Food Policy Research Institute (IFPRI).
- Frank Place & Keijiro Otsuka, 2000. "Population Pressure, Land Tenure, and Tree Resource Management in Uganda," Land Economics, University of Wisconsin Press, vol. 76(2), pages 233-251.
- Nottenburg, Carol & Pardey, Philip G. & Wright, Brian D., 2001. "Accessing other people's technology: do non-profit agencies need it? how to obtain it?," EPTD discussion papers 79, International Food Policy Research Institute (IFPRI).
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