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Infrastructure and Economic Growth

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  • Sam S. Enimola

    (Economics, Adekunle Ajasin University, Akungba Akoko, enimola2010@yahoo.com)

Abstract

This article analyzed theoretically and empirically the influence of infrastructure investment on economic growth in Nigeria from 1980–2006. The study employed the use of vector error correction estimate (VECM). The variables were found to be stationary at order 1, and there exists a long-run equilibrium relationship between the dependent and the explanatory variables. However, the two variables for infrastructure show a steadily declining rate on the long run as shown by the result of the variance decomposition and impulse response functions. It is suggested that the government should intensify their efforts in mobilising more resources towards the provision and improvement of basic infrastructure.

Suggested Citation

  • Sam S. Enimola, 2010. "Infrastructure and Economic Growth," Journal of Infrastructure Development, India Development Foundation, vol. 2(2), pages 121-133, December.
    • Handle: RePEc:sae:jouinf:v:2:y:2010:i:2:p:121-133
    DOI: 10.1177/097493061100200203
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    References listed on IDEAS

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    More about this item

    Keywords

    JEL Classification: C10; JEL Classification: H40; JEL Classification: H54; JEL Classification: L90; JEL Classification: O43; Infrastructure; VECM; variance decomposition; impulse response function; economic growth;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • L90 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - General
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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