Public infrastructure and growth : new channels and policy implications

By P. Agénor, B. Moreno-Dodson. 2006

328 citations recorded by the source corpus.

This paper provides an overview of the various channels through which public infrastructure may affect growth. In addition to the conventional productivity, complementarity, and crowding-out effects typically emphasized in the literature, the impact of infrastructure on investment adjustment costs, the durability of private capital, and the production of health and education services are also highlighted. Effects on health and education are well documented in a number of microeconomic studies, but macroeconomists have only recently begun to study their implications for growth. Links between health, infrastructure, and growth are illustrated in an endogenous growth model with transitional dynamics, and the optimal allocation of public expenditure is discussed. The concluding section draws implications of the analysis for the design of strategies aimed at promoting growth and reducing poverty.

Subfields: Economics and Econometrics, Political Science and International Relations

View Paper: https://www.semanticscholar.org/paper/513eb611a09d127a920ee4a2425f028bd89bb7ce

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Citations in the corpus

Current Debates on Infrastructure Policy (2007, neutral): “Infrastructure may affect growth through many channels (see Agénor and Moreno‐Dodson 2006 for an overview).”
Transport Infrastructure Development, Public Performance and Long-Run Economic Growth: A Case Study for the Eu-28 Countries (2018, background): “Agénor and Moreno-Dodson [89] analyze links between health, education, infrastructure, and growth in an endogenous growth model with transitional dynamics and highlight few policy implications.”
Infrastructure and Development: A Critical Appraisal of the Macro-level Literature (2008, background): “Sala-i-Martin (2004). Agenor and Moreno-Dodson (2006) discuss several channels through which infrastructure may affect growth in these models.”
Roads out of poverty? Assessing the links between aid, public investment, growth, and poverty reduction (2005, positive): “To link the core macro structure presented above to poverty, and to assess the effects of policy shocks on the poor, an attractive methodology from an operational standpoint is the procedure proposed by Agénor et al. (2003), and further developed by Agénor et al.”