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Infrastructure and development : a critical appraisal of the macro level literature

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  • Straub, Stephane

Abstract

This survey reviews the existing macro-level empirical literature on the link between infrastructure and development outcomes in a critical light. After providing a general framework that casts the relevant terms of the controversy on the real effect of infrastructure on growth in the context of an aggregate production function, it signals what are the relevant empirical questions to be addressed. This guides the systematic review of a number of empirical studies and the discussion of the main econometric challenges to the identification of the effect of infrastructure on output and productivity. Finally, building on related research, in particular in contract theory and political economy, the paper spells out several promising research avenues.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4590.

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Date of creation: 01 Apr 2008
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Handle: RePEc:wbk:wbrwps:4590

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Keywords: Transport Economics Policy&Planning; Banks&Banking Reform; Economic Theory&Research; Political Economy; Non Bank Financial Institutions;

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Citations

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Cited by:
  1. Leonardo Romeo & Paul Smoke, 2014. "The Political Economy of Local Infrastructure Planning," International Center for Public Policy Working Paper Series, at AYSPS, GSU, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University paper1417, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  2. Straub, Stephane & Vellutini, Charles & Warlters, Michael, 2008. "Infrastructure and economic growth in East Asia," Policy Research Working Paper Series, The World Bank 4589, The World Bank.
  3. Saraswat, Deepak, 2008. "Towards a sustainable Growth story: A critical analysis of the fundamentals," MPRA Paper 12306, University Library of Munich, Germany.
  4. Shankha Chakraborty & Era Dabla-Norris, 2009. "The Quality of Public Investment," IMF Working Papers, International Monetary Fund 09/154, International Monetary Fund.
  5. Grigoli, Francesco & Mills, Zachary, 2011. "Do high and volatile levels of public investment suggest misconduct ? the role of institutional quality," Policy Research Working Paper Series, The World Bank 5735, The World Bank.
  6. Stephen Gibbons & Teemu Lyytikäinen & Henry Overman & Rosa Sanchis-Guarner, 2012. "New Road Infrastructure: the Effects on Firms," SERC Discussion Papers, Spatial Economics Research Centre, LSE 0117, Spatial Economics Research Centre, LSE.
  7. Daniel Benitez & Antonio Estache & Tina Søreide, 2012. "Infrastructure policy and governance failures," CMI Working Papers, CMI (Chr. Michelsen Institute), Bergen, Norway 5, CMI (Chr. Michelsen Institute), Bergen, Norway.
  8. Jan, Sajjad Ahmad & Chani, Muhammad Irfan & Pervaiz, Zahid & Chaudhary, Amatul R., 2012. "Physical infrastructure and economic development in Pakistan," MPRA Paper 37785, University Library of Munich, Germany.
  9. Kolomak, E., 2011. "Efficiency of Infrastructure Capital in Russia," Journal of the New Economic Association, New Economic Association, New Economic Association, issue 10, pages 74-93.
  10. Kasuga, Hidefumi & Morita, Yuichi, 2012. "Aid effectiveness, governance and public investment," Economic Modelling, Elsevier, Elsevier, vol. 29(2), pages 514-521.
  11. Roberts, Mark & Deichmann, Uwe & Fingleton, Bernard & Shi, Tuo, 2010. "On the road to prosperity ? The economic geography of China's national expressway network," Policy Research Working Paper Series, The World Bank 5479, The World Bank.
  12. Julian Donaubauer & Birgit Meyer & Peter Nunnenkamp, 2014. "Aid, Infrastructure, and FDI: Assessing the Transmission Channel with a New Index of Infrastructure," Kiel Working Papers 1954, Kiel Institute for the World Economy.
  13. Angel de la Fuente, 2010. "Infrastructures and productivity: an updated survey," UFAE and IAE Working Papers, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC) 831.10, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  14. Yongzheng Yang & Nkunde Mwase, 2012. "BRICs’ Philosophies for Development Financing and their Implications for LICs," IMF Working Papers, International Monetary Fund 12/74, International Monetary Fund.
  15. Rosa Sanchis-Guarner, 2012. "Driving Up Wages: The Effects of Road Construction in Great Britain," SERC Discussion Papers, Spatial Economics Research Centre, LSE 0120, Spatial Economics Research Centre, LSE.

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