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The Determinants of Economic Growth: The Role of Infrastructure

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  • Fosu, Prince

Abstract

The main objectives of the study were to examine the effect of infrastructure (i.e. railway network) on economic growth and to examine the direction of causality between economic growth and infrastructure using historical data covering the period of 1980 to 2016 and cointegration analysis. The findings from the study revealed a positive and significant effect of infrastructure on economic growth in the long-run however, the effect of infrastructure on economic growth was not significant in the short-run analysis. Also, the test of causality found a unidirectional causality running from economic growth to infrastructure. To increase economic growth in the United States, this study recommends that both the Federal and the State Government should increase its investments in infrastructure spending especially in railways.

Suggested Citation

  • Fosu, Prince, 2019. "The Determinants of Economic Growth: The Role of Infrastructure," MPRA Paper 93101, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:93101
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    File URL: https://mpra.ub.uni-muenchen.de/93101/1/MPRA_paper_93101.pdf
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    References listed on IDEAS

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    Cited by:

    1. Fosu Prince, 2021. "Does Railway Lines Investments Matter for Economic Growth?," Economics, Sciendo, vol. 9(1), pages 11-24, June.
    2. Danijela Jaćimović & Milena Lipovina-Božović & Bojan Pejović & Sunčica Vuković, 2025. "The Impact of Infrastructure Development on the Economic Growth of the Countries in the Western Balkans and their EU Future," Prague Economic Papers, Prague University of Economics and Business, vol. 2025(1), pages 45-77.
    3. Çetin, Murat & Sarıgül, Sevgi Sümerli & Işık, Cem & Avcı, Pınar & Ahmad, Munir & Alvarado, Rafael, 2023. "The impact of natural resources, economic growth, savings, and current account balance on financial sector development: Theory and empirical evidence," Resources Policy, Elsevier, vol. 81(C).

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    Keywords

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    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

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