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Does Infrastructure Alleviates Poverty in Developing Countries?

Author

Listed:
  • Seetanah, B.
  • Ramessur, S.
  • Rojid, S.

Abstract

Infrastructure has largely been ignored in the assessment of poverty in developing countries. This paper attempts to make some contribution in the establishing the ingredients to alleviate poverty by exploring the impact of infrastructure on the urban poor in sample of 20 developing countries, over the period 1980-2005. The results from the static fixed effect and also the dynamic GMM model both reveal that transport and communication infrastructure are indeed an efficient tool in fighting urban poverty. Panel causality analysis also validated the results. Hence the main policy concern is how to improve access of the urban poor to such an asset.

Suggested Citation

  • Seetanah, B. & Ramessur, S. & Rojid, S., 2009. "Does Infrastructure Alleviates Poverty in Developing Countries?," International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, vol. 9(2).
  • Handle: RePEc:eaa:ijaeqs:v:9:y2009:i:1_9
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    File URL: http://www.usc.es/economet/reviews/ijaeqs922.pdf
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    References listed on IDEAS

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    1. Dominique van de Walle & Dorothyjean Cratty, 2004. "Is the emerging non-farm market economy the route out of poverty in Vietnam?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 12(2), pages 237-274, June.
    2. Escobal, Javier, 2001. "The Determinants of Nonfarm Income Diversification in Rural Peru," World Development, Elsevier, vol. 29(3), pages 497-508, March.
    3. Canning, David & Bennathan, Esra, 2000. "The social rate of return on infrastructure investments," Policy Research Working Paper Series 2390, The World Bank.
    4. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    5. Guillermo Larraín & Helmut Reisen & Julia von Maltzan, 1997. "Emerging Market Risk and Sovereign Credit Ratings," OECD Development Centre Working Papers 124, OECD Publishing.
    6. Ravallion, Martin & Datt, Gaurav, 1996. "How Important to India's Poor Is the Sectoral Composition of Economic Growth?," World Bank Economic Review, World Bank Group, vol. 10(1), pages 1-25, January.
    7. Stefan Dercon & Pramila Krishnan, 1998. "Changes in Poverty in Rural Ethiopia 1989-1995: Measurement, Robustness Tests and Decomposition," Working Papers Department of Economics ces9819, KU Leuven, Faculty of Economics and Business, Department of Economics.
    8. repec:dau:papers:123456789/6159 is not listed on IDEAS
    9. Jacoby, Hanan C, 2000. "Access to Markets and the Benefits of Rural Roads," Economic Journal, Royal Economic Society, vol. 110(465), pages 713-737, July.
    10. Arsenio M. Balisacan & Ernesto M. Pernia, 2001. "Probing Beneath Cross-National Averages: Poverty, Inequality, and Growth in the Philippines," UP School of Economics Discussion Papers 200111, University of the Philippines School of Economics.
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    Citations

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    Cited by:

    1. Andres,Luis Alberto & Biller,S. A. Dan & Herrera Dappe,Matias, 2014. "Infrastructure gap in South Asia : infrastructure needs, prioritization, and financing," Policy Research Working Paper Series 7032, The World Bank.

    More about this item

    Keywords

    Urban Poverty; Infrastructure; Developing Countries;

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General

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