The Determinants of Economic Growth: The Role of Infrastructure

Prince Fosu

MPRA Paper from University Library of Munich, Germany

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.

Keywords: economic growth; infrastructure; inflation; trade deficit; United States (search for similar items in EconPapers)
JEL-codes: O4 O44 R1 R4 R42 (search for similar items in EconPapers)
Date: 2019-04-01
New Economics Papers: this item is included in nep-gro, nep-his and nep-tre
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:93101

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