The Structural and Productivity Effects of Infrastructure Provision in Developed and Developing Countries

Luis Orea, Inmaculada Álvarez and Luis Servén

A chapter in Essays in Honor of Subal Kumbhakar, 2024, vol. 46, pp 265-308 from Emerald Group Publishing Limited

Abstract: This chapter provides an empirical assessment of the effects of infrastructure provision on structural change and aggregate productivity using industrylevel data for a set of developed and developing countries over 1995–2010. A distinctive feature of the empirical strategy followed is that it allows the measurement of the resource reallocation directly attributable to infrastructure provision. To achieve this, a two-level top-down decomposition of aggregate productivity that combines and extends several strands of the literature is proposed. The empirical application reveals significant production losses attributable to misallocation of inputs across firms, especially among African countries. Also, the results show that infrastructure provision has stimulated aggregate total factor productivity growth through both within and between industry productivity gains.

Keywords: Productivity growth; resource allocation; stochastic frontier analysis; structural change; infrastructure provision; top-down TFP decomposition (search for similar items in EconPapers)
Date: 2024
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Related works:
Working Paper: The structural and productivity effects of infrastructure provision in developed and developing countries (2022)
Working Paper: The Structural and Productivity Effects of Infrastructure Provision in Developed and Developing Countries (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:eme:aecozz:s0731-905320240000046010

DOI: 10.1108/S0731-905320240000046010

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