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The Economics of Infrastructure in a Globalized World: Issues, Lessons and Future Challenges

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  • Warwick McKibbin

    ()

  • Timo Henckel

    ()

Abstract

The massive fiscal stimulus in the wake of the global financial crisis has refocused the international community onto the nature and role of infrastructure spending. Although this type of spending can provide a short-term demand stimulus to an economy, in the medium to longer term it can form a critical part of a successful economic growth strategy. Well designed infrastructure facilitates economies of scale, reduces costs of trade, and is thus central to specialization and the efficient production and consumption of goods and services. It is a vital ingredient to economic growth and development, which is the key to raising living standards.

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Bibliographic Info

Paper provided by Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University in its series CAMA Working Papers with number 2010-39.

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Length: 14 pages
Date of creation: Dec 2010
Date of revision:
Handle: RePEc:een:camaaa:2010-39

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  1. Hoppe, Eva I & Schmitz, Patrick W, 2010. "Public-private partnerships versus traditional procurement: Innovation incentives and information gathering," CEPR Discussion Papers 7681, C.E.P.R. Discussion Papers.
  2. David Hummels & Georg Schaur, 2012. "Time as a Trade Barrier," NBER Working Papers 17758, National Bureau of Economic Research, Inc.
  3. Calderon, Cesar & Moral-Benito, Enrique & Serven, Luis, 2011. "Is infrastructure capital productive ? a dynamic heterogeneous approach," Policy Research Working Paper Series 5682, The World Bank.
  4. Easterly, William & Levine, Ross, 1998. "Troubles with the Neighbours: Africa's Problem, Africa's Opportunity," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 7(1), pages 120-42, March.
  5. Roberts, Mark & Deichmann, Uwe, 2009. "International growth spillovers, geography and infrastructure," Policy Research Working Paper Series 5153, The World Bank.
  6. David Aschauer, 1988. "Is public expenditure productive?," Staff Memoranda 88-7, Federal Reserve Bank of Chicago.
  7. Ndulu,Benno J. & O'Connell,Stephen A. & Bates,Robert H. & Collier,Paul & Soludo,Chukwuma C., 2009. "The Political Economy of Economic Growth in Africa, 1960–2000," Cambridge Books, Cambridge University Press, number 9780521127752, October.
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Cited by:
  1. McKibbin, Warwick J & Stoeckel, Andrew B & Lu, YingYing, 2012. "Global fiscal adjustment and trade rebalancing," Policy Research Working Paper Series 6044, The World Bank.
  2. Hoppe, Eva I. & Kusterer, David J. & Schmitz, Patrick W., 2013. "Public–private partnerships versus traditional procurement: An experimental investigation," Journal of Economic Behavior & Organization, Elsevier, vol. 89(C), pages 145-166.

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