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Public and private provision of infrastructure and economic development

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Author Info
Andrew Bernard
Márcio Gomes Pinto Garcia () (Department of Economics PUC-Rio)

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Abstract

This paper examines the role of infrastructure in long run economic growth. The paper consists of two sections, the first concentrates on the theoretical role of government spending in models of growth and the second details examples of private participation in infrastructure development. Using a simple endogenous growth model we find that while the hypothesized benefits of infrastructure expenditures may be large they require care in matching appropriate financing. As the development and maintenance of infrastructure will continue to be pivotal to the long term success of growing economies, we emphasize the lessons on financing and the caveats of private participation to those who are exploring innovative mechanisms for infrastructure design.

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Publisher Info
Paper provided by Department of Economics PUC-Rio (Brazil) in its series Textos para discussão with number 375.

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Length: 17 pages
Date of creation: Oct 1997
Date of revision:
Handle: RePEc:rio:texdis:375

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