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Public infrastructure and growth : new channels and policy implications (English)

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.

Details

  • Author

    Agenor,Pierre-Richard, Moreno-Dodson,Blanca

  • Document Date

    2006/11/01

  • Document Type

    Policy Research Working Paper

  • Report Number

    WPS4064

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    World,

  • Region

    The World Region,

  • Disclosure Date

    2010/07/01

  • Disclosure Status

    Disclosed

  • Doc Name

    Public infrastructure and growth : new channels and policy implications

  • Keywords

    public capital;rate of return on capital;Demographic and Health Survey;Public Infrastructure;private capital;Health Service;public investment in infrastructure;consumption of health services;higher level of education;National Institute of Health;water supply and sanitation;secondary school enrollment rate;information and communication technology;marginal product of labor;access to safe water;impact on health outcomes;composition of public spending;supply of health services;delivery of health services;access to infrastructure service;primary health care facilities;access to health care;Access to Electricity;quality of public;propensity to save;effect on health;rate of depreciation;education and health;infant mortality rate;incidence of malaria;human capital;access to water;infrastructure and growth;private capital stock;cross-country growth regression;sanitation in school;elasticity of output;vehicle operating cost;years of schooling;source of energy;endogenous growth model;elasticity of substitution;private investment;adjustment cost;effectiveness of education;intestinal worm infections;increase in consumption;education for woman;access to school;children must;supply of labor;efficiency of labor;accessing health care;efficiency of investment;consumption of good;maternal mortality ratio;school health program;government budget constraint;direct government spending;health care centers;integrated rural development;determinants of growth;health of individuals;adequate toilet facility;demand for children;health child;increasing school enrollment;food for education;impact of health;primary school participation;improvements in health;category of services;higher education level;range of disease;primary education level;high dropout rate;risk of death;investment adjustment cost;discounted present value;human capital accumulation;children attending schools;returns to schooling;marginal adjustment cost;future cash flow;level of private;wealth of nation;effect of maintenance;basic water supply;hand washing facility;inadequate water supply;world health organization;access to information;indoor air pollution;investment in water;means of transportation;international roughness index;quality of infrastructure;share of resource;quality of education;poor road condition;quality of learning;availability of electricity;rural area;Learning and Innovation Credit;balanced growth;productivity effect;capital ratio;labor productivity;health production;attendance rate;optimal allocation;Education Services;private production;public expenditure;private spending;production cost;cross-country regression;greater access;life expectancy;macro level;education outcome;cross-country study;infrastructure asset;maintenance expenditure;Sanitation Services;cognitive development;paved road;marginal effect;negative effect;discount rate;investment rate;cross-section regression;depreciation rate;flat tax;tradable sector;Public Services;empirical study;electrical equipment;young adult;optimal allocation of resources;macroeconomic model;effective service;indirect channel;simulation exercise;Mental health;distortionary tax;allocation rule;infrastructure quality;representative household;public resource;Education Technology;adjustment path;infrastructure spending;boil water;important policy;government expenditure;significant correlation;public health;health interventions;binding constraint;population size;infrastructure capital;output growth;sanitation infrastructure;school technology;urban community;simultaneous equation;high correlation;Women's Education;children underweight;road maintenance;infrastructure needs;female schooling;children of ages;health hazard;Child Health;traditional biomass;respiratory illness;maternal malnutrition;irreversible effect;fatty acid;social relation;crop residue;traditional fuel;capital formation;power loss;freight charge;Public-Private Partnership;electronic equipment;learning process;empirical research;waiting time;transport cost

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Citation

Agenor,Pierre-Richard Moreno-Dodson,Blanca

Public infrastructure and growth : new channels and policy implications (English). Policy, Research working paper ; no. WPS 4064 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/485431468141267544/Public-infrastructure-and-growth-new-channels-and-policy-implications