IDEAS home Printed from https://ideas.repec.org/p/ris/adbewp/0231.html

Infrastructure and Growth in Developing Asia

Author

Listed:
  • Stéphane Straub

    (Toulouse School of Economics)

  • Akiko Terada-Hagiwara

    (Asian Development Bank)

Abstract

This paper presents the state of infrastructure in developing Asian countries. It applies two distinct approaches (growth regressions and growth accounting) to analyze the link between infrastructure, growth, and productivity. The main conclusion is that a number of countries in developing Asia have significantly improved their basic infrastructure endowments in the recent past, and this appears to correlate significantly with good growth performances. However, the evidence seems to indicate that this is mostly the result of factor accumulation (a direct effect), while the impact on productivity is inconclusive.

Suggested Citation

  • Stéphane Straub & Akiko Terada-Hagiwara, 2010. "Infrastructure and Growth in Developing Asia," ADB Economics Working Paper Series 231, Asian Development Bank.
  • Handle: RePEc:ris:adbewp:0231
    as

    Download full text from publisher

    File URL: https://www.adb.org/publications/infrastructure-and-growth-developing-asia
    File Function: Full text
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Prabir De, 2010. "Governance, Institutions, and Regional Infrastructure in Asia," Governance Working Papers 22878, East Asian Bureau of Economic Research.
    2. Richard Baldwin & Rikard Forslid & Philippe Martin & Gianmarco Ottaviano & Frederic Robert-Nicoud, 2005. "Economic Geography and Public Policy," Economics Books, Princeton University Press, edition 1, number 7524.
    3. Uwe Deichmann & Marianne Fay & Jun Koo & Somik V. Lall, 2004. "Economic structure, productivity, and infrastructure quality in Southern Mexico," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 38(3), pages 361-385, September.
    4. 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.
    5. Gibson, John & Rozelle, Scott, 2003. "Poverty and Access to Roads in Papua New Guinea," Economic Development and Cultural Change, University of Chicago Press, vol. 52(1), pages 159-185, October.
    6. Straub, Stephane, 2008. "Infrastructure and growth in developing countries : recent advances and research challenges," Policy Research Working Paper Series 4460, The World Bank.
    7. Maskin, Eric & Tirole, Jean, 2008. "Public-private partnerships and government spending limits," International Journal of Industrial Organization, Elsevier, vol. 26(2), pages 412-420, March.
    8. Duarte Bom, P.R. & Ligthart, J.E., 2008. "How Productive is Public Capital? A Meta-Analysis," Discussion Paper 2008-10, Tilburg University, Center for Economic Research.
    9. David McKenzie & Dilip Mookherjee, 2003. "The Distributive Impact of Privatization in Latin America: Evidence from Four Countries," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Spring 20), pages 161-234.
    10. Fan, Shenggen & Nyange, David & Rao, Neetha, 2005. "Public investment and poverty reduction in Tanzania: evidence from household survey data," DSGD discussion papers 18, International Food Policy Research Institute (IFPRI).
    11. John G. Fernald, 1999. "Roads to Prosperity? Assessing the Link between Public Capital and Productivity," American Economic Review, American Economic Association, vol. 89(3), pages 619-638, June.
    12. Prabir De, 2010. "Governance, Institutions, and Regional Infrastructure in Asia," ADBI Working Papers 183, Asian Development Bank Institute.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Younis, Fizza, 2014. "Significance of Infrastructure Investment for Economic Growth," MPRA Paper 72659, University Library of Munich, Germany, revised 01 Jun 2015.
    2. is not listed on IDEAS
    3. Lisa CHAUVET & Alvaro DE MIGUEL TORRES & Alexa TIEMANN, 2018. "Electricity and manufacturing firm profits in Myanmar," Working Papers P214, FERDI.
    4. Aghion, Philippe & Akcigit, Ufuk & Cagé, Julia & Kerr, William R., 2016. "Taxation, corruption, and growth," European Economic Review, Elsevier, vol. 86(C), pages 24-51.
    5. Hallonsten, Jan Simon & Ziesemer, Thomas, 2016. "A semi-endogenous growth model for developing countries with public factors, imported capital goods, and limited export demand," MERIT Working Papers 2016-004, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    6. Barbara Kotschwar, 2012. "Transportation and Communication Infrastructure in Latin America: Lessons from Asia," Working Paper Series WP12-6, Peterson Institute for International Economics.
    7. Biying Dong & Yingzhi Xu, 2025. "Energy Poverty and Social Welfare: Its Measurement Analysis and Moderating Mechanism Evaluation," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 176(2), pages 593-627, January.
    8. United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) South and South-West (ed.), 2018. "Achieving the Sustainable Development Goals in South Asia: Key Policy Priorities and Implementation Challenges," SSWA Books and Research Reports, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) South and South-West Asia Office, number brr5, May.
    9. Pernia, Ernesto, 2012. "Infrastructure and Inclusive Growth," MPRA Paper 104910, University Library of Munich, Germany.
    10. United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) South and South-West (ed.), 2012. "Regional Cooperation for Inclusive and Sustainable Development: South and South-West Asia Development Report 2012-2013," SSWA Books and Research Reports, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) South and South-West Asia Office, number brr4, May.
    11. Remi Jedwab & Adam Storeygard, 2019. "Economic and Political Factors in Infrastructure Investment: Evidence from Railroads and Roads in Africa 1960–2015," Economic History of Developing Regions, Taylor & Francis Journals, vol. 34(2), pages 156-208, May.
    12. Mao, Ning & Sun, Weizeng & Zhang, Liuqin, 2024. "The innovation effects of transportation infrastructure: Evidence from highways in China," Economics of Transportation, Elsevier, vol. 38(C).
    13. Bajar, Sumedha, 2014. "Infrastructure output nexus: Regional experience from India," Working Papers 319, Institute for Social and Economic Change, Bangalore.
    14. Khanna, Rupika & Sharma, Chandan, 2021. "Does infrastructure stimulate total factor productivity? A dynamic heterogeneous panel analysis for Indian manufacturing industries," The Quarterly Review of Economics and Finance, Elsevier, vol. 79(C), pages 59-73.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Straub, Stephane, 2008. "Infrastructure and growth in developing countries : recent advances and research challenges," Policy Research Working Paper Series 4460, The World Bank.
    2. Ghosh, Arghya & Meagher, Kieron, 2015. "The politics of infrastructure investment: The role of product market competition," Journal of Economic Behavior & Organization, Elsevier, vol. 119(C), pages 308-329.
    3. Manfred Wiebelt & Rainer Schweickert & Clemens Breisinger & Marcus Böhme, 2011. "Oil revenues for public investment in Africa: targeting urban or rural areas?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 147(4), pages 745-770, November.
    4. Vivien Foster & José Luis Guasch & Luis Andrés & Thomas Haven, 2008. "The Impact of Private Sector Participation in Infrastructure: Lights, Shadows, and the Road Ahead," IDB Publications (Books), Inter-American Development Bank, number 59818, February.
    5. Foster, Vivien & Guasch, José Luis & Andrés, Luis & Haven, Thomas, 2008. "The Impact of Private Sector Participation in Infrastructure: Lights, Shadows, and the Road Ahead," IDB Publications (Books), Inter-American Development Bank, number 358, July.
    6. Stephane Straub, 2011. "Infrastructure and Development: A Critical Appraisal of the Macro-level Literature," Journal of Development Studies, Taylor & Francis Journals, vol. 47(5), pages 683-708.
    7. Foster, Vivien & Guasch, José Luis & Andrés, Luis & Haven, Thomas, 2008. "The Impact of Private Sector Participation in Infrastructure: Lights, Shadows, and the Road Ahead," IDB Publications (Books), Inter-American Development Bank, number 358, June.
    8. Ali,Rubaba & Barra,Alvaro Federico & Berg,Claudia N. & Damania,Richard & Nash,John D. & Russ,Jason Daniel & Ali,Rubaba & Barra,Alvaro Federico & Berg,Claudia N. & Damania,Richard & Nash,John D. & Russ, 2015. "Transport infrastructure and welfare : an application to Nigeria," Policy Research Working Paper Series 7271, The World Bank.
    9. Straub, Stephane & Vellutini, Charles & Warlters, Michael, 2008. "Infrastructure and economic growth in East Asia," Policy Research Working Paper Series 4589, The World Bank.
    10. Perz, Stephen G. & Mendoza, Elsa R.H. & dos Santos Pimentel, Alan, 2022. "Seeing the broader picture: Stakeholder contributions to understanding infrastructure impacts of the Interoceanic Highway in the southwestern Amazon," World Development, Elsevier, vol. 159(C).
    11. Stephen Perz & Alexander Shenkin & Grenville Barnes & Liliana Cabrera & Lucas Carvalho & Jorge Castillo, 2012. "Connectivity and Resilience: A Multidimensional Analysis of Infrastructure Impacts in the Southwestern Amazon," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 106(2), pages 259-285, April.
    12. Stephen Perz, 2012. "Social Mobilization in Protest of Trans-boundary Highway Projects: Explaining Contrasting Implementation Outcomes," Development and Change, International Institute of Social Studies, vol. 43(3), pages 797-821, May.
    13. Wong, Ho Lun & Wang, Yu & Luo, Renfu & Zhang, Linxiu & Rozelle, Scott, 2017. "Local governance and the quality of local infrastructure: Evidence from village road projects in rural China," Journal of Public Economics, Elsevier, vol. 152(C), pages 119-132.
    14. Bergantino, Angela Stefania & Capozza, Claudia & Spiru, Ada, 2021. "Multilevel analysis of firms’ performance in Emerging Economies: The role of transport infrastructures and logistics as contextual factors," Working Papers 21_2, SIET Società Italiana di Economia dei Trasporti e della Logistica.
    15. repec:idb:brikps:358 is not listed on IDEAS
    16. Fan, Shenggen & Chan-Kang, Connie, 2004. "Road development, economic growth, and poverty reduction in China," DSGD discussion papers 12, International Food Policy Research Institute (IFPRI).
    17. Stephen G. Perz & Flavia L. Leite & Lauren N. Griffin & Jeffrey Hoelle & Martha Rosero & Lucas Araujo Carvalho & Jorge Castillo & Daniel Rojas, 2015. "Trans-Boundary Infrastructure and Changes in Rural Livelihood Diversity in the Southwestern Amazon: Resilience and Inequality," Sustainability, MDPI, vol. 7(9), pages 1-30, September.
    18. Khondoker Abdul Mottaleb & Dil Bahadur Rahut, 2019. "Impacts of Improved Infrastructure on Labor Allocation and Livelihoods: The Case of the Jamuna Multipurpose Bridge, Bangladesh," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(4), pages 750-778, September.
    19. Peter Warr, 2005. "Roads and Poverty in Rural Laos," Departmental Working Papers 2005-04, The Australian National University, Arndt-Corden Department of Economics.
    20. Hong, Cheng-Yih & Li, Jian-Fa, 2015. "On measuring the effects of fiscal policy in global financial crisis: Evidences from an export-oriented island economy," Economic Modelling, Elsevier, vol. 46(C), pages 412-415.
    21. Yang Wang & Binzhen Wu, 2015. "Railways and the Local Economy: Evidence from Qingzang Railway," Economic Development and Cultural Change, University of Chicago Press, vol. 63(3), pages 551-588.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • 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
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:adbewp:0231. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Orlee Velarde (email available below). General contact details of provider: https://edirc.repec.org/data/eradbph.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.