IDEAS home Printed from
   My bibliography  Save this paper

Infrastructure Capital in Russia: Effects On Economic Growth


  • Evgeniya Kolomak



Aims of the study are to estimate 1) contribution of infrastructure capital in productivity growth in Russia, and 2) level and spatial extension of the spillovers for different categories of infrastructure. We measure stock of the traditional infrastructure sectors: railways, highways, communication. We use data for 79 Russian regions, covered period is 1992 - 2007. The basic idea of econometric estimates is to expand a production function including infrastructure capital stock. We examine several different categories of public capital. The log-linear Cobb-Douglas form of the production function gives empirical model. We assume existence of spatial spillovers of the infrastructure elements and dependence of regional productivity on public capital of neighboring regions introducing into the model spatial weights matrix and a spatial lag component. There are several problems of econometric estimates relating to the model. The first one is correct specification of the spatial dependence, what includes construction of the spatial weights matrix. The proposed strategy is to run series of regressions using different spatial weighs matrixes. The second one is common trends of output and public capital. One of the proposed ways to resolve the problem is to use some forms of differences. The third problem involves missing variables; panel data and taking of the differences to some extent lessen this problem. Another problem is causality: does absence of progress in infrastructure capital reduce economic growth or does low growth of output decrease the demand for infrastructure? The endogeneity poses question of instrumental variables, the choice of a spatial lag of the predicted values of the dependent variable or of spatially lagged exogenous variables is considered. Infrastructure capital is a public good however its effects can be distributed uneven among different sectors of economic activity. To take this fact into account the proposed set of growth model estimations are done for two alternative production functions focusing on gross regional product and on manufacturing sector only. The results are as follows: - estimates of contribution of infrastructure capital in productivity growth in Russia; - evidence of infrastructure externalities; - estimates of infrastructure spatial spillovers for different categories.

Suggested Citation

  • Evgeniya Kolomak, 2011. "Infrastructure Capital in Russia: Effects On Economic Growth," ERSA conference papers ersa10p471, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa10p471

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Jeffrey Cohen & Kristen Monaco, 2008. "Ports and Highways Infrastructure," International Regional Science Review, , vol. 31(3), pages 257-274, July.
    2. Philippe Aghion & Mark Schankerman, 1999. "Competition, entry and the social returns to infrastructure in transition economies," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(1), pages 79-101, March.
    3. Rosina Moreno & Enrique López-Bazo, 2007. "Returns to Local and Transport Infrastructure under Regional Spillovers," International Regional Science Review, , vol. 30(1), pages 47-71, January.
    4. Norton, Seth W, 1992. "Transaction Costs, Telecommunications, and the Microeconomics of Macroeconomic Growth," Economic Development and Cultural Change, University of Chicago Press, vol. 41(1), pages 175-196, October.
    5. Holtz-Eakin, Douglas & Lovely, Mary E., 1996. "Scale economies, returns to variety, and the productivity of public infrastructure," Regional Science and Urban Economics, Elsevier, vol. 26(2), pages 105-123, April.
    6. Martin, Philippe & Rogers, Carol Ann, 1995. "Industrial location and public infrastructure," Journal of International Economics, Elsevier, vol. 39(3-4), pages 335-351, November.
    Full references (including those not matched with items on IDEAS)

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    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:wiw:wiwrsa:ersa10p471. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.