Infrastructure, specialization, and economic growth

Spiros Bougheas, Panicos Demetriades and Theofanis Mamuneas ()

Canadian Journal of Economics/Revue canadienne d'économique, 2000, vol. 33, issue 2, 506-522

Abstract: We introduce infrastructure as a cost‐reducing technology in Romer's (1987) model of endogenous growth. We show that infrastructure can promote specialization and long‐run growth, even though its effect on the latter is non‐monotonic, reflecting its resource costs. We provide evidence using data from the U.S. Census of Manufactures that suggests that the degree of specialization is positively correlated with core infrastructure, as predicted by the model. We also provide evidence from cross‐country regressions, using physical measures of infrastructure provision, that shows a robust non‐monotonic relationship between infrastructure and growth. JEL Classification: 041,050 Les auteurs introduisent l'infrastructure en tant que technologie réduisant les coûts dans un modèle de croissance endogène à la Romer (1987). On montre que l'infrastructure peut promouvoir la spécialisation et la croissance en longue péride, même si ses effets sur la croissance ne sont pas monotones et reflètent ses coûts en ressource. On montre, en utilisant les données du recensement des manufactures des Etats Unis, que le degré de spécialisation est relié positivement à l'infrastructure de base, comme le suggère le modèle. On montre aussi à l'aide de régressions transversales, utilisant des mesures physiques de l'infrastructure, qu'il existe une relation non monotone mais robuste entre infrastructure et croissance.

Date: 2000
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Citations: View citations in EconPapers (39)

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https://doi.org/10.1111/0008-4085.00026

Related works:
Journal Article: Infrastructure, specialization, and economic growth (2000)
Working Paper: Infrastructure, Specialisation and Economic Growth (1995)
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Persistent link: https://EconPapers.repec.org/RePEc:wly:canjec:v:33:y:2000:i:2:p:506-522

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