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Volume and Quality of Infrastructure and the Distribution of Income: An Empirical Investigation

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  • Alberto Chong

    ()

  • César Calderón

Abstract

We provide evidence on the link between infrastructure development and the distribution of income for the period 1960-1995. To do this, we use several proxies such as roads, railways, telecommunications and energy measures. The approach is comprehensive as cross-country and panel methods are applied. In the latter case, we apply GMM dynamic panel methods in order to minimize for endogeneity problems. Both quantity of infrastructure and quality of infrastructure are negatively linked with income inequality. The quantitative link tends to be stronger in developing countries than the qualitative link. These findings hold when using different econometric methods and most infrastructure measures.

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Paper provided by Inter-American Development Bank, Research Department in its series Research Department Publications with number 4263.

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Date of creation: Apr 2001
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Handle: RePEc:idb:wpaper:4263

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  1. Hongyi Li & Lyn Squire & Heng-fu Zou, 1998. "Explaining International and Intertemporal Variations in Income Inequality," CEMA Working Papers 73, China Economics and Management Academy, Central University of Finance and Economics.
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  9. Charles R. Hulten, 1996. "Infrastructure Capital and Economic Growth: How Well You Use It May Be More Important Than How Much You Have," NBER Working Papers 5847, National Bureau of Economic Research, Inc.
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  14. Lachler, Ulrich & Aschauer, David Alan, 1998. "Public investment and economic growth in Mexico," Policy Research Working Paper Series 1964, The World Bank.
  15. Gramlich, Edward M, 1994. "Infrastructure Investment: A Review Essay," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1176-96, September.
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  18. Chong, Alberto & Calderon, Cesar, 2000. "Institutional Quality and Income Distribution," Economic Development and Cultural Change, University of Chicago Press, vol. 48(4), pages 761-86, July.
  19. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 277-97, April.
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Citations

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Cited by:
  1. Massimo Florio & Silvia Vignetti, 2005. "Cost-benefit Analysis of Infrastructure Projects in an Enlarged European Union: Returns and Incentives," Economic Change and Restructuring, Springer, vol. 38(3), pages 179-210, December.
  2. He, Xiaobo, 2013. "Wages and Access to International Markets: Evidence from Urban China," MPRA Paper 44537, University Library of Munich, Germany.
  3. César Calderón & Luis Servén, 2004. "The Effects of Infrastructure Development on Growth and Income Distribution," Working Papers Central Bank of Chile 270, Central Bank of Chile.
  4. Johannes Fedderke & Željko Bogetic, 2005. "Infrastructure and Growth in South Africa: Direct and Indirect Productivity Impacts of 19 Infrastructure Measures," Working Papers 39, Economic Research Southern Africa.
  5. World Bank, 2008. "Nicaragua - Poverty Assessment : Volume 2. Background Paper," World Bank Other Operational Studies 8103, The World Bank.
  6. repec:cuf:journl:y:2014:v:15:i:2:calderon:serven is not listed on IDEAS
  7. Yoseph Yilma Getachew, 2011. "Public Investment Policy, Distribution, and Growth: What Levels of Redistribution through Public Investment Maximize Growth?," DEGIT Conference Papers c016_072, DEGIT, Dynamics, Economic Growth, and International Trade.
  8. Rojas, Gina E. Acosta & Calfat, Germán & Flôres Junior, Renato Galvão, 2005. "Trade and Infrastructure: evidences from the Andean Community," Economics Working Papers (Ensaios Economicos da EPGE) 580, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
  9. Calderon, Cesar & Serven, Luis, 2008. "Infrastructure and economic development in Sub-Saharan Africa," Policy Research Working Paper Series 4712, The World Bank.
  10. Hanjra, Munir A. & Ferede, Tadele & Gutta, Debel Gemechu, 2009. "Reducing poverty in sub-Saharan Africa through investments in water and other priorities," Agricultural Water Management, Elsevier, vol. 96(7), pages 1062-1070, July.
  11. Carlos Aparicio & Miguel A. Jaramillo & Cristina San Román, 2011. "Desarrollo de la infraestructura y reducción de la pobreza: el caso peruano," Working Papers 11-00, Departamento de Economía, Universidad del Pacífico, revised Sep 2011.
  12. Luis Serven & César Calderon, 2004. "The Effects of Infrastructure Development on Growth and income," Econometric Society 2004 Latin American Meetings 173, Econometric Society.
  13. Getachew, Yoseph, 2008. "Public Capital, Income Distribution and Growth," MERIT Working Papers 056, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  14. Getachew, Yoseph Yilma, 2010. "Public capital and distributional dynamics in a two-sector growth model," Journal of Macroeconomics, Elsevier, vol. 32(2), pages 606-616, June.
  15. Anna McCord & Dirk Ernst van Seventer, 2004. "The economy-wide impacts of the labour intensification of infrastructure expenditure in South Africa," SALDRU/CSSR Working Papers 093, Southern Africa Labour and Development Research Unit, University of Cape Town.

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