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Infrastructure and Economic Growth: Evidence from Lower Middle-Income Countries

Author

Listed:
  • Rimsha Irshad

    (Lahore College for Women University)

  • Mehr-un-Nisa

    (Lahore College for Women University)

  • Naghmana Ghafoor

    (Lahore College for Women University)

Abstract

A gap of infrastructure development exists between developed and lower-middle income countries (LMICs), and this gap is widening. This situation emphasizes to explore the dynamic association between infrastructure and economic growth in lower-middle income countries. The objective of this study is to analyze the contribution of infrastructure in economic growth across 18 lower-middle income countries for the period of 1995–2017 by applying fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS). The study finds that investment in telecommunication, electricity power consumption, and transportation contributes to economic growth in lower-middle-income countries. Thus, continuous investment is needed in transportation, electricity power, and communication sectors to achieve the target of high economic growth.

Suggested Citation

  • Rimsha Irshad & Mehr-un-Nisa & Naghmana Ghafoor, 2023. "Infrastructure and Economic Growth: Evidence from Lower Middle-Income Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(1), pages 161-179, March.
    • Handle: RePEc:spr:jknowl:v:14:y:2023:i:1:d:10.1007_s13132-021-00855-1
    DOI: 10.1007/s13132-021-00855-1
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    More about this item

    Keywords

    Lower-middle income countries; Infrastructure; Economic growth; Panel cointegration; Fully modified ordinary least squares; Dynamic ordinary least squares;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • H4 - Public Economics - - Publicly Provided Goods
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • L9 - Industrial Organization - - Industry Studies: Transportation and Utilities

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