The impact of infrastructure on economic growth in Colombia: a Smithian approach

Carlos Ortiz, Diana Marcela Jiménez () and Gissel Natalia Cruz ()
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Diana Marcela Jiménez: Universidad del Valle
Gissel Natalia Cruz: Universidad del Valle

Lecturas de Economía, 2019, issue 90, 97-126

Abstract: This paper proposes a new way of calculating the infrastructural stock. This is composed of all durable assets for public use, whether built by private or state agents. In this way, economic growth regressions for Colombia yield that the hypothesis of constant returns to scale in entrepreneurial capital (aggregate of fixed and human capital) and infrastructure cannot be ruled out. It is also estimated that the product elasticity of infrastructure is significantly greater than that of entrepreneurial capital. Once controlled for the accumulation of production factors, the main determinants of growth (and productivity) are the diversification of the manufacturing industrial sector, the purchasing power of the population, and the homicide rate. The Smithian approach to economic development is compatible with these findings. Finally, the decomposition of national economic growth suggests that this has been predominantly extensive

Keywords: infrastructure; economic growth; productive diversification; purchasing power; property rights; scale economies. (search for similar items in EconPapers)
JEL-codes: E01 E22 H54 O11 O47 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:lde:journl:y:2019:i:90:p:97-126

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DOI: 10.17533/udea.le.n90a04

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