Infrastructure and Development Interlinkage in West Bengal: A VAR Analysis
AbstractTheoretical propositions proclaim that the association between Infrastructure Availability and Development of a region is quite strong and runs from the former to the latter. Empirical studies are however, inconclusive. While few researchers have concluded that the impact of infrastructure on development levels, though positive, is not significant, equally large numbers of studies claim that infrastructure explains a substantial part of development levels. In this paper the association between infrastructural availability and development for the West Bengal economy is explored using a multidimensional approach and a time series study. It is observed that both developmental and infrastructural indices have shown a continuously rising trend during 1971-2001. The causation seems to be stronger from infrastructure to development. The long run relationships suggest strong positive impact of infrastructural availability on development levels. Different facets of infrastructure seem to have different impacts on different dimensions of development. A segmented policy aiming at specific sectors need to be adopted, with the greatest importance being attached to those infrastructural indicators that have highest total impact and strongest 'linkages' across sectors. Only this can sustain the development 'push' generated in West Bengal. Otherwise, the superstructure will have only a weak base and will come crashing down any day.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 4820.
Date of creation: 2005
Date of revision:
Infrastructure; Development; Error Correction; VAR; Time Series;
Find related papers by JEL classification:
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
- C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
- R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
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