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Impact of infrastructure investment on developed and developing economies

Author

Listed:
  • Xuehui Han

    (Asian Infrastructure Investment Bank)

  • Jiaqi Su

    (Asian Infrastructure Investment Bank)

  • Jang Ping Thia

    (Asian Infrastructure Investment Bank)

Abstract

This paper uses two longitudinal datasets—one with more limited coverage from the organization for economic co-operation and development and another constructed using general government gross fixed capital formation—to test for the relative effects of infrastructure versus non-infrastructure investment on output per worker, between developed and developing economies. The paper presents evidence that increasing infrastructure per worker has a larger relative impact on developing economies. This also implies that the share of gross capital formation devoted to infrastructure should be higher in developing economies.

Suggested Citation

  • Xuehui Han & Jiaqi Su & Jang Ping Thia, 2021. "Impact of infrastructure investment on developed and developing economies," Economic Change and Restructuring, Springer, vol. 54(4), pages 995-1024, November.
    • Handle: RePEc:kap:ecopln:v:54:y:2021:i:4:d:10.1007_s10644-020-09287-4
    DOI: 10.1007/s10644-020-09287-4
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    References listed on IDEAS

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