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Have Collapses in Infrastructure Spending Led to Cross-Country Divergence in per Capita GDP?

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  • Francisco Rodríguez

    ()
    (Department of Economics, Wesleyan University)

Abstract

This paper explores whether the post-1980 decline in infrastructure investment in developing countries is a source of growing disparities in world per capita GDP. I start by reviewing the literature on the infrastructure-productivity link, arguing that a balanced reading of previous studies points to a significant effect of infrastructure provision on productivity. I then empirically study whether retrenchments in infrastructure provision have played a role in growing disparities using a data set of country-level infrastructure stocks for 121 countries since 1960. Cutbacks in infrastructure investment appear to be at most a minor cause of growing divergence in per capita incomes.

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Bibliographic Info

Paper provided by Wesleyan University, Department of Economics in its series Wesleyan Economics Working Papers with number 2006-013.

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Length: 46 pages
Date of creation: Apr 2006
Date of revision:
Handle: RePEc:wes:weswpa:2006-013

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Cited by:
  1. Pablo Guerrero & Krista Lucenti & Sebastián Galarza S., 2009. "Trade Logistic and Regional Integration in Latin America & the Caribbean," IDB Publications 9331, Inter-American Development Bank.
  2. Rob Vos & Marco V. Sánchez & Cornelia Kaldewei, 2008. "Latin America and the Caribbean’s Challenge to Reach the MDGs: Financing Options and Trade-offs," Working Papers 68, United Nations, Department of Economics and Social Affairs.
  3. Addison, Tony & Anand, P. B., 2012. "Aid and Infrastructure Financing: Emerging challenges with a focus on Africa," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  4. José Antonio Ocampo & Rob Vos, 2008. "Policy space and the changing paradigm in conducting macroeconomic policies in developing countries," BIS Papers chapters, in: Bank for International Settlements (ed.), New financing trends in Latin America: a bumpy road towards stability, volume 36, pages 28-45 Bank for International Settlements.

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