Infrastructure and Economic Growth: Evidence from Lower Middle-Income Countries

Rimsha Irshad (), Mehr-un-Nisa () and Naghmana Ghafoor ()
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Rimsha Irshad: Lahore College for Women University
Mehr-un-Nisa: Lahore College for Women University
Naghmana Ghafoor: Lahore College for Women University

Journal of the Knowledge Economy, 2023, vol. 14, issue 1, No 8, 179 pages

Abstract: Abstract A gap of infrastructure development exists between developed and lower-middle income countries (LMICs), and this gap is widening. This situation emphasizes to explore the dynamic association between infrastructure and economic growth in lower-middle income countries. The objective of this study is to analyze the contribution of infrastructure in economic growth across 18 lower-middle income countries for the period of 1995–2017 by applying fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS). The study finds that investment in telecommunication, electricity power consumption, and transportation contributes to economic growth in lower-middle-income countries. Thus, continuous investment is needed in transportation, electricity power, and communication sectors to achieve the target of high economic growth.

Keywords: Lower-middle income countries; Infrastructure; Economic growth; Panel cointegration; Fully modified ordinary least squares; Dynamic ordinary least squares (search for similar items in EconPapers)
JEL-codes: H4 H54 L9 O1 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s13132-021-00855-1

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