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Have Collapses in Infrastructure Spending led to Cross-Country Divergence in Per Capita GDP?

  • Francisco Rodriguez

This paper explores whether the post-1980 decline in infrastructure investment in developing countries is a source of growing disparities in world per capita GDP. I start by reviewing the literature on the infrastructure-productivity link, arguing that a balanced reading of previous studies points to a significant effect of infrastructure provision on productivity. I then empirically study whether retrenchments in infrastructure provision have played a role in growing disparities using a data set of country-level infrastructure stocks for 121 countries since 1960. Cutbacks in infrastructure investment appear to be at most a minor cause of growing divergence in per capita incomes.

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File URL: http://www.un.org/esa/desa/papers/2007/wp52_2007.pdf
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Paper provided by United Nations, Department of Economics and Social Affairs in its series Working Papers with number 52.

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Length: 22 pages
Date of creation: Jul 2007
Date of revision:
Handle: RePEc:une:wpaper:52
Contact details of provider: Web page: http://www.un.org/en/development/desa/working-papers.html
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