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Infrastructure and Growth in Developing Countries: Recent Advances and Research Challenges

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Stephane Straub ()

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Abstract

This paper presents a survey of recent research on the economics of infrastructure in developing countries. Energy, transport, telecommunications, water and sanitation are considered. The survey covers two main set of issues: the linkages between infrastructure and economic growth (at the economy-wide, regional and sectoral level) and the composition, sequencing and efficiency of alternative infrastructure investments, including the arbitrage between new investments and maintenance expenditures; OPEX and CAPEX, and public versus private investment. Following the introduction, section 2 discusses the theoretical foundations (growth theory and new economic geography). Section 3 assesses the analysis of 140 specifications from 64 recent empirical papers examining type of data used, level of aggregation, econometric techniques and nature of the sample and discusses both the macro-econometric and microeconometric contributions of these papers. Finally section 4 discusses directions for future research and suggests priorities in data development.

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Paper provided by Edinburgh School of Economics, University of Edinburgh in its series ESE Discussion Papers with number 179.

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Length: 54
Date of creation: Jan 2008
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Handle: RePEc:edn:esedps:179

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  20. Newbery, David, 2004. "Privatising Network Industries," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
  21. Rauch, James E, 1995. "Bureaucracy, Infrastructure, and Economic Growth: Evidence from U.S. Cities during the Progressive Era," American Economic Review, American Economic Association, vol. 85(4), pages 968-79, September. [Downloadable!] (restricted)
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  22. J. Vernon Henderson, Zmarak Shalizi, and Anthony J. Venables, 2001. "Geography and development," Journal of Economic Geography, Oxford University Press, vol. 1(1), pages 81-105, January.
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  23. Sebastian Galiani, Paul Gertler, and Ernesto Schargrodsky, 2005. "Water for Life: The Impact of the Privatization of Water Services on Child Mortality," Journal of Political Economy, University of Chicago Press, vol. 113(1), pages 83-120, February.
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  30. Henderson, Vernon, 2003. " The Urbanization Process and Economic Growth: The So-What Question," Journal of Economic Growth, Springer, vol. 8(1), pages 47-71, March. [Downloadable!] (restricted)
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