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The impact of infrastructure on economic growth in Colombia: a Smithian approach

Author

Listed:
  • Carlos Humberto Ortiz

    (Universidad del Valle)

  • Diana Marcela Jiménez

    (Universidad del Valle)

  • Gissel Natalia Cruz

    (Universidad del Valle)

Abstract

This paper proposes a new way of calculating the infrastructural stock. This is composed of all durable assets for public use, whether built by private or state agents. In this way, economic growth regressions for Colombia yield that the hypothesis of constant returns to scale in entrepreneurial capital (aggregate of fixed and human capital) and infrastructure cannot be ruled out. It is also estimated that the product elasticity of infrastructure is significantly greater than that of entrepreneurial capital. Once controlled for the accumulation of production factors, the main determinants of growth (and productivity) are the diversification of the manufacturing industrial sector, the purchasing power of the population, and the homicide rate. The Smithian approach to economic development is compatible with these findings. Finally, the decomposition of national economic growth suggests that this has been predominantly extensive

Suggested Citation

  • Carlos Humberto Ortiz & Diana Marcela Jiménez & Gissel Natalia Cruz, 2019. "The impact of infrastructure on economic growth in Colombia: a Smithian approach," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 90, pages 97-126, Enero - J.
    • Handle: RePEc:lde:journl:y:2019:i:90:p:97-126
    DOI: 10.17533/udea.le.n90a04
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    1. Diana Marcela Jiménez Restrepo & Carlos Humberto Ortiz Quevedo & Jos� Ignacio Uribe, 2019. "Una reformulación de la ley de Okun para Colombia," Revista de Economía del Caribe, Universidad del Norte, vol. 0(0), pages 1-23.

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    Keywords

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    JEL classification:

    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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