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Effects of infrastructure on regional income in the era of globalization: new evidence from South Asia

Author

Listed:
  • Prabir De

    (Research and Information System for the Non-aligned and Other Developing Countries, India Habitat Centre, India)

  • Buddhadeb Ghosh

    (Economic Research Unit, Indian Statistical Institute, India)

Abstract

The South Asian Association for Regional Cooperation (SAARC), a combination of seven nations – Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka – in a diverse subcontinent of Asia, is going through the process of structural adjustment programmes. Without proper trading infrastructure, no country or economic bloc can succeed in the new borderless world where, for all practical purposes, regional cooperation has become an instrument for creating a competitive edge over other regional blocs. This paper tries to find out the role played by infrastructure facilities in economic development across South Asian countries over the past quarter century. The findings are statistically very significant to warrant major changes in future regional policies in order to remove rising regional disparities in both infrastructure and income. This also has a strong bearing on the success of poverty removal policies as the poor are regionally concentrated in such a diverse and heterogeneous region of the world, where market imperfections abound and heterogeneities are insurmountable.

Suggested Citation

  • Prabir De & Buddhadeb Ghosh, 2005. "Effects of infrastructure on regional income in the era of globalization: new evidence from South Asia," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 12(1), pages 81-107, June.
    • Handle: RePEc:unt:jnapdj:v:12:y:2005:i:1:p:81-107
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    References listed on IDEAS

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    Cited by:

    1. Pradhan, Jaya Prakash, 2011. "Regional heterogeneity and firms’ innovation: the role of regional factors in industrial R&D in India," MPRA Paper 28096, University Library of Munich, Germany.
    2. Flora Pandya & Suresh Maind, 2017. "Panel data analysis: convergence of Indian states with infrastructure," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 19(1), pages 181-195, April.
    3. Prabir De & Biswa N. Bhattacharyay, 2007. "Deepening India–Bangladesh Economic Cooperation : Challenges and Opportunities," Macroeconomics Working Papers 22098, East Asian Bureau of Economic Research.
    4. Prabir De, 2009. "Regional Cooperation for Regional Infrastructure Development : Challenges and Policy Options for South Asia," Development Economics Working Papers 22988, East Asian Bureau of Economic Research.
    5. Manjunath, Soumya & Kannan, Elumalai, 2015. "Effect of rural infrastructure on agricultural development: District level analysis in Karnataka," Working Papers 345, Institute for Social and Economic Change, Bangalore.
    6. Pernia, Ernesto, 2012. "Infrastructure and Inclusive Growth," MPRA Paper 104910, University Library of Munich, Germany.
    7. Nisha S. Simon & P. Natarajan, 2017. "Nonlinearity between Infrastructure Inequality and Growth," Review of Market Integration, India Development Foundation, vol. 9(1-2), pages 66-82, April.
    8. Fosu, Prince, 2016. "Infrastructure and Foreign Direct Investment Inflows: Evidence from Ghana," MPRA Paper 100375, University Library of Munich, Germany, revised 13 May 2020.
    9. 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

    South Asia; infrastructure; regional cooperation; economic growth; income;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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