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Infrastructure and Growth in Developing Asia

Author

Listed:
  • Straub, Stéphane

    (Asian Development Bank)

  • Terada-Hagiwara, Akiko

    (Asian Development Bank)

Abstract

This paper applies two distinct approaches—growth regressions and growth accounting—to analyze the link between infrastructure, growth, and productivity in developing Asian countries. The main conclusion is that a number of countries in developing Asia have significantly improved their basic infrastructure endowments in the recent past. This improvement appears to correlate significantly with good growth performances. However, the evidence seems to indicate that this is mostly the result of factor accumulation, a direct effect, and that the impact on productivity is rather inconclusive.

Suggested Citation

  • Straub, Stéphane & Terada-Hagiwara, Akiko, 2011. "Infrastructure and Growth in Developing Asia," Asian Development Review, Asian Development Bank, vol. 28(1), pages 119-156.
    • Handle: RePEc:ris:adbadr:0006
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Remi Jedwab & Adam Storeygard, 2019. "Economic and Political Factors in Infrastructure Investment: Evidence from Railroads and Roads in Africa 1960–2015," Economic History of Developing Regions, Taylor & Francis Journals, vol. 34(2), pages 156-208, May.
    2. Lisa CHAUVET & Alvaro DE MIGUEL TORRES & Alexa TIEMANN, 2018. "Electricity and manufacturing firm profits in Myanmar," Working Papers P214, FERDI.
    3. Aghion, Philippe & Akcigit, Ufuk & Cagé, Julia & Kerr, William R., 2016. "Taxation, corruption, and growth," European Economic Review, Elsevier, vol. 86(C), pages 24-51.
    4. Bajar, Sumedha, 2014. "Infrastructure output nexus: Regional experience from India," Working Papers 319, Institute for Social and Economic Change, Bangalore.
    5. United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) South and South-West (ed.), 2018. "Achieving the Sustainable Development Goals in South Asia: Key Policy Priorities and Implementation Challenges," SSWA Books and Research Reports, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) South and South-West Asia Office, number brr5, May.
    6. Khanna, Rupika & Sharma, Chandan, 2021. "Does infrastructure stimulate total factor productivity? A dynamic heterogeneous panel analysis for Indian manufacturing industries," The Quarterly Review of Economics and Finance, Elsevier, vol. 79(C), pages 59-73.
    7. Younis, Fizza, 2014. "Significance of Infrastructure Investment for Economic Growth," MPRA Paper 72659, University Library of Munich, Germany, revised 01 Jun 2015.
    8. Barbara Kotschwar, 2012. "Transportation and Communication Infrastructure in Latin America: Lessons from Asia," Working Paper Series WP12-6, Peterson Institute for International Economics.
    9. Pernia, Ernesto, 2012. "Infrastructure and Inclusive Growth," MPRA Paper 104910, University Library of Munich, Germany.
    10. Mao, Ning & Sun, Weizeng & Zhang, Liuqin, 2024. "The innovation effects of transportation infrastructure: Evidence from highways in China," Economics of Transportation, Elsevier, vol. 38(C).
    11. Hallonsten, Jan Simon & Ziesemer, Thomas, 2016. "A semi-endogenous growth model for developing countries with public factors, imported capital goods, and limited export demand," MERIT Working Papers 2016-004, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    12. United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) South and South-West (ed.), 2012. "Regional Cooperation for Inclusive and Sustainable Development: South and South-West Asia Development Report 2012-2013," SSWA Books and Research Reports, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) South and South-West Asia Office, number brr4, May.

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    More about this item

    Keywords

    Infrastructure; growth; productivity; Asia;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • N15 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Asia including Middle East

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