INFRASTRUCTURE, GROWTH AND PRODUCTIVITY: AN ANALYSIS IN DYNAMIC HETEROGENEOUS PANELS
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Abstract
This article presents an empirical analysis of the impact of infrastructure development on growth and productivity, utilizing a heterogeneous dynamic panel comprising 18 countries from Latin America and the Asian Tigers for the period spanning 1980 to 2017. The study primarily focuses on estimating the elasticities of output and productivity concerning infrastructure stock derived from Principal Component Analysis (PCA). The results confirm that the comparatively lower level of infrastructure stock in Latin American countries, in contrast to the Asian Tigers, is associated with reduced productivity and lower economic growth rates within the former group of nations.
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References
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