Infrastructure and Economic Growth in East Asia

This paper examines whether infrastructure investment has contributed to East Asia's economic growth using both a growth accounting framework and cross-country regressions. For most of the variables used, both the growth accounting exercise an...

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Main Authors: Straub, Stéphane, Vellutini, Charles, Warlters, Michael
Format: Policy Research Working Paper
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
ADB
GDP
Online Access:http://documents.worldbank.org/curated/en/2008/04/9354731/infrastructure-economic-growth-east-asia
http://hdl.handle.net/10986/6520
id okr-10986-6520
recordtype oai_dc
spelling okr-10986-65202021-04-23T14:02:31Z Infrastructure and Economic Growth in East Asia Straub, Stéphane Vellutini, Charles Warlters, Michael ACCOUNTING ACCOUNTING FRAMEWORK ADB AGGREGATE OUTPUT AGRICULTURE AVERAGE GROWTH AVERAGE GROWTH RATE AVERAGE LEVEL BENCHMARK BOTTLENECKS CAPITAL INVESTMENT CENTRAL BANK CONGESTION COUNTRY REGRESSIONS CROSS COUNTRY DECONCENTRATION DEFICITS DEPENDENT VARIABLE DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPING REGIONS DEVELOPMENT INDICATORS DIMINISHING RETURNS DISPOSABLE INCOME DIVIDENDS DOMESTIC MARKETS DRIVING DYNAMIC PANEL ECONOMIC DEVELOPMENT ECONOMIC GEOGRAPHY ECONOMIC GROWTH ECONOMIC HISTORY ECONOMIC PERFORMANCE ECONOMIC RESEARCH ECONOMICS ECONOMIES OF SCALE EDUCATIONAL ATTAINMENT ELASTICITY EMPIRICAL LITERATURE EMPIRICAL RESULTS ERROR TERM EXOGENOUS VARIABLES EXPLANATORY VARIABLES EXPRESSWAYS EXTERNALITIES EXTERNALITY FACTOR PRICES FINANCIAL CRISIS FINANCIAL DATA FINANCIAL DEVELOPMENT FIXED EFFECTS GDP GDP PER CAPITA GOVERNMENT REGULATION GROSS FIXED CAPITAL FORMATION GROWTH MODELS GROWTH POTENTIAL GROWTH RATE GROWTH RATES GROWTH REGRESSION GROWTH REGRESSIONS GROWTH THEORY HIGH INCOME COUNTRIES HIGHWAY HIGHWAYS HUMAN CAPITAL INCOME DISTRIBUTION INCOME GROUPS INCREASING RETURNS INCREASING RETURNS TO SCALE INDIVIDUAL COUNTRIES INDUSTRIALIZATION INFLATION INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE INVESTMENT INFRASTRUCTURE POLICIES INFRASTRUCTURES INVENTORY INVESTMENT BANK INVESTMENT CLIMATE LAGGED VALUE LAGGED VALUES LONG-RUN GROWTH LONG-TERM GROWTH LOW-INCOME COUNTRIES MIDDLE EAST MIDDLE INCOME COUNTRIES NEGATIVE EFFECT NEGATIVE IMPACT NEOCLASSICAL GROWTH MODEL NETWORK EXTERNALITIES NORTH AFRICA PACIFIC ISLANDS PANEL REGRESSIONS PER CAPITA GROWTH POLICY ISSUES POLICY RESEARCH POOR COUNTRIES POPULATION DENSITY POSITIVE EFFECTS POVERTY REDUCTION PRODUCTION FUNCTION PRODUCTIVITY PRODUCTIVITY GROWTH PUBLIC INFRASTRUCTURE PUBLIC INVESTMENT RAIL RAIL NETWORK RAIL ROUTE RAILROAD RAILWAYS REDUCED FORM EQUATION REDUCING POVERTY REGIONAL INEQUALITY RETURN ON INVESTMENT ROAD ROAD INFRASTRUCTURE ROAD NETWORK ROADS ROUTE RURAL POVERTY RURAL ROADS SANITATION SAVINGS SECONDARY SCHOOLING SIGNIFICANT EFFECT STOCKS SUB-SAHARAN AFRICA TELECOMMUNICATIONS TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TRANSPORT TRINIDAD AND TOBAGO TRUE URBAN AREAS URBANIZATION VEHICLES This paper examines whether infrastructure investment has contributed to East Asia's economic growth using both a growth accounting framework and cross-country regressions. For most of the variables used, both the growth accounting exercise and cross-country regressions fail to find a significant link between infrastructure, productivity and growth. These conclusions contrast strongly with previous studies finding positive and significant effect for all infrastructure variables in the context of a production function study. This leads us to conclude that results from studies using macro-level data should be considered with extreme caution. The Authors suggest that infrastructure investment may have had the primary function of relieving constraints and bottlenecks as they arose, as opposed to directly encouraging growth. 2012-05-29T14:20:51Z 2012-05-29T14:20:51Z 2008-04 http://documents.worldbank.org/curated/en/2008/04/9354731/infrastructure-economic-growth-east-asia http://hdl.handle.net/10986/6520 English Policy Research Working Paper; No. 4589 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ACCOUNTING
ACCOUNTING FRAMEWORK
ADB
AGGREGATE OUTPUT
AGRICULTURE
AVERAGE GROWTH
AVERAGE GROWTH RATE
AVERAGE LEVEL
BENCHMARK
BOTTLENECKS
CAPITAL INVESTMENT
CENTRAL BANK
CONGESTION
COUNTRY REGRESSIONS
CROSS COUNTRY
DECONCENTRATION
DEFICITS
DEPENDENT VARIABLE
DEVELOPED COUNTRIES
DEVELOPING COUNTRIES
DEVELOPING REGIONS
DEVELOPMENT INDICATORS
DIMINISHING RETURNS
DISPOSABLE INCOME
DIVIDENDS
DOMESTIC MARKETS
DRIVING
DYNAMIC PANEL
ECONOMIC DEVELOPMENT
ECONOMIC GEOGRAPHY
ECONOMIC GROWTH
ECONOMIC HISTORY
ECONOMIC PERFORMANCE
ECONOMIC RESEARCH
ECONOMICS
ECONOMIES OF SCALE
EDUCATIONAL ATTAINMENT
ELASTICITY
EMPIRICAL LITERATURE
EMPIRICAL RESULTS
ERROR TERM
EXOGENOUS VARIABLES
EXPLANATORY VARIABLES
EXPRESSWAYS
EXTERNALITIES
EXTERNALITY
FACTOR PRICES
FINANCIAL CRISIS
FINANCIAL DATA
FINANCIAL DEVELOPMENT
FIXED EFFECTS
GDP
GDP PER CAPITA
GOVERNMENT REGULATION
GROSS FIXED CAPITAL FORMATION
GROWTH MODELS
GROWTH POTENTIAL
GROWTH RATE
GROWTH RATES
GROWTH REGRESSION
GROWTH REGRESSIONS
GROWTH THEORY
HIGH INCOME COUNTRIES
HIGHWAY
HIGHWAYS
HUMAN CAPITAL
INCOME DISTRIBUTION
INCOME GROUPS
INCREASING RETURNS
INCREASING RETURNS TO SCALE
INDIVIDUAL COUNTRIES
INDUSTRIALIZATION
INFLATION
INFRASTRUCTURE DEVELOPMENT
INFRASTRUCTURE INVESTMENT
INFRASTRUCTURE POLICIES
INFRASTRUCTURES
INVENTORY
INVESTMENT BANK
INVESTMENT CLIMATE
LAGGED VALUE
LAGGED VALUES
LONG-RUN GROWTH
LONG-TERM GROWTH
LOW-INCOME COUNTRIES
MIDDLE EAST
MIDDLE INCOME COUNTRIES
NEGATIVE EFFECT
NEGATIVE IMPACT
NEOCLASSICAL GROWTH MODEL
NETWORK EXTERNALITIES
NORTH AFRICA
PACIFIC ISLANDS
PANEL REGRESSIONS
PER CAPITA GROWTH
POLICY ISSUES
POLICY RESEARCH
POOR COUNTRIES
POPULATION DENSITY
POSITIVE EFFECTS
POVERTY REDUCTION
PRODUCTION FUNCTION
PRODUCTIVITY
PRODUCTIVITY GROWTH
PUBLIC INFRASTRUCTURE
PUBLIC INVESTMENT
RAIL
RAIL NETWORK
RAIL ROUTE
RAILROAD
RAILWAYS
REDUCED FORM EQUATION
REDUCING POVERTY
REGIONAL INEQUALITY
RETURN ON INVESTMENT
ROAD
ROAD INFRASTRUCTURE
ROAD NETWORK
ROADS
ROUTE
RURAL POVERTY
RURAL ROADS
SANITATION
SAVINGS
SECONDARY SCHOOLING
SIGNIFICANT EFFECT
STOCKS
SUB-SAHARAN AFRICA
TELECOMMUNICATIONS
TOTAL FACTOR PRODUCTIVITY
TOTAL FACTOR PRODUCTIVITY GROWTH
TRANSPORT
TRINIDAD AND TOBAGO
TRUE
URBAN AREAS
URBANIZATION
VEHICLES
spellingShingle ACCOUNTING
ACCOUNTING FRAMEWORK
ADB
AGGREGATE OUTPUT
AGRICULTURE
AVERAGE GROWTH
AVERAGE GROWTH RATE
AVERAGE LEVEL
BENCHMARK
BOTTLENECKS
CAPITAL INVESTMENT
CENTRAL BANK
CONGESTION
COUNTRY REGRESSIONS
CROSS COUNTRY
DECONCENTRATION
DEFICITS
DEPENDENT VARIABLE
DEVELOPED COUNTRIES
DEVELOPING COUNTRIES
DEVELOPING REGIONS
DEVELOPMENT INDICATORS
DIMINISHING RETURNS
DISPOSABLE INCOME
DIVIDENDS
DOMESTIC MARKETS
DRIVING
DYNAMIC PANEL
ECONOMIC DEVELOPMENT
ECONOMIC GEOGRAPHY
ECONOMIC GROWTH
ECONOMIC HISTORY
ECONOMIC PERFORMANCE
ECONOMIC RESEARCH
ECONOMICS
ECONOMIES OF SCALE
EDUCATIONAL ATTAINMENT
ELASTICITY
EMPIRICAL LITERATURE
EMPIRICAL RESULTS
ERROR TERM
EXOGENOUS VARIABLES
EXPLANATORY VARIABLES
EXPRESSWAYS
EXTERNALITIES
EXTERNALITY
FACTOR PRICES
FINANCIAL CRISIS
FINANCIAL DATA
FINANCIAL DEVELOPMENT
FIXED EFFECTS
GDP
GDP PER CAPITA
GOVERNMENT REGULATION
GROSS FIXED CAPITAL FORMATION
GROWTH MODELS
GROWTH POTENTIAL
GROWTH RATE
GROWTH RATES
GROWTH REGRESSION
GROWTH REGRESSIONS
GROWTH THEORY
HIGH INCOME COUNTRIES
HIGHWAY
HIGHWAYS
HUMAN CAPITAL
INCOME DISTRIBUTION
INCOME GROUPS
INCREASING RETURNS
INCREASING RETURNS TO SCALE
INDIVIDUAL COUNTRIES
INDUSTRIALIZATION
INFLATION
INFRASTRUCTURE DEVELOPMENT
INFRASTRUCTURE INVESTMENT
INFRASTRUCTURE POLICIES
INFRASTRUCTURES
INVENTORY
INVESTMENT BANK
INVESTMENT CLIMATE
LAGGED VALUE
LAGGED VALUES
LONG-RUN GROWTH
LONG-TERM GROWTH
LOW-INCOME COUNTRIES
MIDDLE EAST
MIDDLE INCOME COUNTRIES
NEGATIVE EFFECT
NEGATIVE IMPACT
NEOCLASSICAL GROWTH MODEL
NETWORK EXTERNALITIES
NORTH AFRICA
PACIFIC ISLANDS
PANEL REGRESSIONS
PER CAPITA GROWTH
POLICY ISSUES
POLICY RESEARCH
POOR COUNTRIES
POPULATION DENSITY
POSITIVE EFFECTS
POVERTY REDUCTION
PRODUCTION FUNCTION
PRODUCTIVITY
PRODUCTIVITY GROWTH
PUBLIC INFRASTRUCTURE
PUBLIC INVESTMENT
RAIL
RAIL NETWORK
RAIL ROUTE
RAILROAD
RAILWAYS
REDUCED FORM EQUATION
REDUCING POVERTY
REGIONAL INEQUALITY
RETURN ON INVESTMENT
ROAD
ROAD INFRASTRUCTURE
ROAD NETWORK
ROADS
ROUTE
RURAL POVERTY
RURAL ROADS
SANITATION
SAVINGS
SECONDARY SCHOOLING
SIGNIFICANT EFFECT
STOCKS
SUB-SAHARAN AFRICA
TELECOMMUNICATIONS
TOTAL FACTOR PRODUCTIVITY
TOTAL FACTOR PRODUCTIVITY GROWTH
TRANSPORT
TRINIDAD AND TOBAGO
TRUE
URBAN AREAS
URBANIZATION
VEHICLES
Straub, Stéphane
Vellutini, Charles
Warlters, Michael
Infrastructure and Economic Growth in East Asia
geographic_facet East Asia and Pacific
relation Policy Research Working Paper; No. 4589
description This paper examines whether infrastructure investment has contributed to East Asia's economic growth using both a growth accounting framework and cross-country regressions. For most of the variables used, both the growth accounting exercise and cross-country regressions fail to find a significant link between infrastructure, productivity and growth. These conclusions contrast strongly with previous studies finding positive and significant effect for all infrastructure variables in the context of a production function study. This leads us to conclude that results from studies using macro-level data should be considered with extreme caution. The Authors suggest that infrastructure investment may have had the primary function of relieving constraints and bottlenecks as they arose, as opposed to directly encouraging growth.
format Publications & Research :: Policy Research Working Paper
author Straub, Stéphane
Vellutini, Charles
Warlters, Michael
author_facet Straub, Stéphane
Vellutini, Charles
Warlters, Michael
author_sort Straub, Stéphane
title Infrastructure and Economic Growth in East Asia
title_short Infrastructure and Economic Growth in East Asia
title_full Infrastructure and Economic Growth in East Asia
title_fullStr Infrastructure and Economic Growth in East Asia
title_full_unstemmed Infrastructure and Economic Growth in East Asia
title_sort infrastructure and economic growth in east asia
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2008/04/9354731/infrastructure-economic-growth-east-asia
http://hdl.handle.net/10986/6520
_version_ 1764400637549740032