The productivity effects of infrastructure: A cross-country comparison using manufacturing industry panels

Rupika Khanna and Chandan Sharma

Applied Economics Letters, 2021, vol. 28, issue 9, 769-773

Abstract: Studies on the productivity effects of infrastructure have produced ambiguous results because of potential inter-sectoral dependencies, non-stationarity and endogeneity issues in estimation. Employing estimators that address these problems, we test the effects of a composite infrastructure index on a panel of industries for four major-Asian economies. Our results indicate positive and sizable long-run effects of infrastructure on productivity for India and China, but not for Japan and S. Korea.

Date: 2021
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DOI: 10.1080/13504851.2020.1781762

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