Is Infrastructure Capital Productive? A Dynamic Heterogeneous Approach
This paper offers an empirical evaluation of the output contribution of infrastructure. Drawing from a large data set on infrastructure stocks covering 88 countries and spanning the years 1960-2000, and using a panel time-series approach, the paper estimates a long-run aggregate production function relating GDP to human capital, physical capital, and a synthetic measure of infrastructure given by the first principal component of infrastructure endowments in transport, power, and telecommunications. Tests of the cointegration rank allowing it to vary across countries reveal a common rank with a single cointegrating vector, which is taken to represent the long-run production function. Estimation of its parameters is performed using the pooled mean group estimator, which allows for unrestricted short-run parameter heterogeneity across countries while imposing the (testable) restriction of long-run parameter homogeneity. The long-run elasticity of output with respect to the synthetic infrastructure index ranges between 0.07 and 0.10. The estimates are highly significant, both statistically and economically, and robust to alternative dynamic specifications and infrastructure measures. There is little evidence of long-run parameter heterogeneity across countries, whether heterogeneity is unconditional, or conditional on their level of development, population size, or infrastructure endowments.
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dig-okr-1098634462024-08-08T15:41:05Z Is Infrastructure Capital Productive? A Dynamic Heterogeneous Approach Calderón, César Moral-Benito, Enrique Servén, Luis AIC BANDWIDTH BANK OF SPAIN CAPITAL STOCK CONSTANT RETURNS TO SCALE CONVERGENCE HYPOTHESIS DEFICITS DEPRECIATION RATE DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DYNAMIC ANALYSIS ECONOMETRIC METHODOLOGY ECONOMETRIC THEORY ECONOMETRICS ECONOMIC ANALYSIS ECONOMIC DEVELOPMENT ECONOMIC DYNAMICS ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC RESEARCH ECONOMICS OF INFRASTRUCTURE ELASTICITIES ELASTICITY ELECTRIC POWER ELECTRICITY EXCHANGE RATES EXPECTED VALUE FISCAL POLICY FORECASTS FOREIGN ASSETS GDP GENERATION GENERATION CAPACITY GOVERNMENT EXPENDITURES GOVERNMENT INVESTMENT GOVERNMENT SPENDING GROWTH MODEL GROWTH MODELS GROWTH RATE HOUSING HUMAN CAPITAL INCOME INCOME DISTRIBUTION INCOME ELASTICITY INCOME LEVELS INEFFICIENCY INFRASTRUCTURE ASSETS INFRASTRUCTURE CONGESTION INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE ECONOMICS INFRASTRUCTURE INVESTMENT INFRASTRUCTURE INVESTMENTS INFRASTRUCTURE PROVISION INFRASTRUCTURE SECTOR INFRASTRUCTURE SERVICES INTERNATIONAL ENERGY INTERNATIONAL ROAD FEDERATION INVENTORY LAND TRANSPORT MACROECONOMICS MARGINAL PRODUCT MARGINAL PRODUCTIVITY MIDDLE INCOME COUNTRIES MIDDLE INCOME COUNTRY MULTIPLIERS OPEN ACCESS PER CAPITA INCOME POLITICAL ECONOMY PRIVATE SECTOR PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION INPUTS PRODUCTIVITY PUBLIC PUBLIC EXPENDITURE PUBLIC GOODS PUBLIC INFRASTRUCTURE PUBLIC INVESTMENT PUBLIC POLICIES PUBLIC SECTOR PURCHASING POWER RAILWAY RAILWAY NETWORK RAILWAYS REAL GDP ROAD ROAD INFRASTRUCTURE ROAD NETWORK ROAD SYSTEM ROAD TRANSPORT ROADS STATISTICAL ANALYSIS TAXATION TELECOMMUNICATIONS TELECOMMUNICATIONS SERVICES TOTAL FACTOR PRODUCTIVITY TRANSITION ECONOMIES TRANSPORT TRANSPORT INFRASTRUCTURE UNEMPLOYMENT URBAN ECONOMICS This paper offers an empirical evaluation of the output contribution of infrastructure. Drawing from a large data set on infrastructure stocks covering 88 countries and spanning the years 1960-2000, and using a panel time-series approach, the paper estimates a long-run aggregate production function relating GDP to human capital, physical capital, and a synthetic measure of infrastructure given by the first principal component of infrastructure endowments in transport, power, and telecommunications. Tests of the cointegration rank allowing it to vary across countries reveal a common rank with a single cointegrating vector, which is taken to represent the long-run production function. Estimation of its parameters is performed using the pooled mean group estimator, which allows for unrestricted short-run parameter heterogeneity across countries while imposing the (testable) restriction of long-run parameter homogeneity. The long-run elasticity of output with respect to the synthetic infrastructure index ranges between 0.07 and 0.10. The estimates are highly significant, both statistically and economically, and robust to alternative dynamic specifications and infrastructure measures. There is little evidence of long-run parameter heterogeneity across countries, whether heterogeneity is unconditional, or conditional on their level of development, population size, or infrastructure endowments. 2012-03-19T18:02:37Z 2012-03-19T18:02:37Z 2011-06-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110615103058 https://hdl.handle.net/10986/3446 English Policy Research Working Paper ; No. 5682 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank application/pdf text/plain |
| institution |
Banco Mundial |
| collection |
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| country |
Estados Unidos |
| countrycode |
US |
| component |
Bibliográfico |
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En linea |
| databasecode |
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| tag |
biblioteca |
| region |
America del Norte |
| libraryname |
Biblioteca del Banco Mundial |
| language |
English |
| topic |
AIC BANDWIDTH BANK OF SPAIN CAPITAL STOCK CONSTANT RETURNS TO SCALE CONVERGENCE HYPOTHESIS DEFICITS DEPRECIATION RATE DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DYNAMIC ANALYSIS ECONOMETRIC METHODOLOGY ECONOMETRIC THEORY ECONOMETRICS ECONOMIC ANALYSIS ECONOMIC DEVELOPMENT ECONOMIC DYNAMICS ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC RESEARCH ECONOMICS OF INFRASTRUCTURE ELASTICITIES ELASTICITY ELECTRIC POWER ELECTRICITY EXCHANGE RATES EXPECTED VALUE FISCAL POLICY FORECASTS FOREIGN ASSETS GDP GENERATION GENERATION CAPACITY GOVERNMENT EXPENDITURES GOVERNMENT INVESTMENT GOVERNMENT SPENDING GROWTH MODEL GROWTH MODELS GROWTH RATE HOUSING HUMAN CAPITAL INCOME INCOME DISTRIBUTION INCOME ELASTICITY INCOME LEVELS INEFFICIENCY INFRASTRUCTURE ASSETS INFRASTRUCTURE CONGESTION INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE ECONOMICS INFRASTRUCTURE INVESTMENT INFRASTRUCTURE INVESTMENTS INFRASTRUCTURE PROVISION INFRASTRUCTURE SECTOR INFRASTRUCTURE SERVICES INTERNATIONAL ENERGY INTERNATIONAL ROAD FEDERATION INVENTORY LAND TRANSPORT MACROECONOMICS MARGINAL PRODUCT MARGINAL PRODUCTIVITY MIDDLE INCOME COUNTRIES MIDDLE INCOME COUNTRY MULTIPLIERS OPEN ACCESS PER CAPITA INCOME POLITICAL ECONOMY PRIVATE SECTOR PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION INPUTS PRODUCTIVITY PUBLIC PUBLIC EXPENDITURE PUBLIC GOODS PUBLIC INFRASTRUCTURE PUBLIC INVESTMENT PUBLIC POLICIES PUBLIC SECTOR PURCHASING POWER RAILWAY RAILWAY NETWORK RAILWAYS REAL GDP ROAD ROAD INFRASTRUCTURE ROAD NETWORK ROAD SYSTEM ROAD TRANSPORT ROADS STATISTICAL ANALYSIS TAXATION TELECOMMUNICATIONS TELECOMMUNICATIONS SERVICES TOTAL FACTOR PRODUCTIVITY TRANSITION ECONOMIES TRANSPORT TRANSPORT INFRASTRUCTURE UNEMPLOYMENT URBAN ECONOMICS AIC BANDWIDTH BANK OF SPAIN CAPITAL STOCK CONSTANT RETURNS TO SCALE CONVERGENCE HYPOTHESIS DEFICITS DEPRECIATION RATE DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DYNAMIC ANALYSIS ECONOMETRIC METHODOLOGY ECONOMETRIC THEORY ECONOMETRICS ECONOMIC ANALYSIS ECONOMIC DEVELOPMENT ECONOMIC DYNAMICS ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC RESEARCH ECONOMICS OF INFRASTRUCTURE ELASTICITIES ELASTICITY ELECTRIC POWER ELECTRICITY EXCHANGE RATES EXPECTED VALUE FISCAL POLICY FORECASTS FOREIGN ASSETS GDP GENERATION GENERATION CAPACITY GOVERNMENT EXPENDITURES GOVERNMENT INVESTMENT GOVERNMENT SPENDING GROWTH MODEL GROWTH MODELS GROWTH RATE HOUSING HUMAN CAPITAL INCOME INCOME DISTRIBUTION INCOME ELASTICITY INCOME LEVELS INEFFICIENCY INFRASTRUCTURE ASSETS INFRASTRUCTURE CONGESTION INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE ECONOMICS INFRASTRUCTURE INVESTMENT INFRASTRUCTURE INVESTMENTS INFRASTRUCTURE PROVISION INFRASTRUCTURE SECTOR INFRASTRUCTURE SERVICES INTERNATIONAL ENERGY INTERNATIONAL ROAD FEDERATION INVENTORY LAND TRANSPORT MACROECONOMICS MARGINAL PRODUCT MARGINAL PRODUCTIVITY MIDDLE INCOME COUNTRIES MIDDLE INCOME COUNTRY MULTIPLIERS OPEN ACCESS PER CAPITA INCOME POLITICAL ECONOMY PRIVATE SECTOR PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION INPUTS PRODUCTIVITY PUBLIC PUBLIC EXPENDITURE PUBLIC GOODS PUBLIC INFRASTRUCTURE PUBLIC INVESTMENT PUBLIC POLICIES PUBLIC SECTOR PURCHASING POWER RAILWAY RAILWAY NETWORK RAILWAYS REAL GDP ROAD ROAD INFRASTRUCTURE ROAD NETWORK ROAD SYSTEM ROAD TRANSPORT ROADS STATISTICAL ANALYSIS TAXATION TELECOMMUNICATIONS TELECOMMUNICATIONS SERVICES TOTAL FACTOR PRODUCTIVITY TRANSITION ECONOMIES TRANSPORT TRANSPORT INFRASTRUCTURE UNEMPLOYMENT URBAN ECONOMICS |
| spellingShingle |
AIC BANDWIDTH BANK OF SPAIN CAPITAL STOCK CONSTANT RETURNS TO SCALE CONVERGENCE HYPOTHESIS DEFICITS DEPRECIATION RATE DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DYNAMIC ANALYSIS ECONOMETRIC METHODOLOGY ECONOMETRIC THEORY ECONOMETRICS ECONOMIC ANALYSIS ECONOMIC DEVELOPMENT ECONOMIC DYNAMICS ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC RESEARCH ECONOMICS OF INFRASTRUCTURE ELASTICITIES ELASTICITY ELECTRIC POWER ELECTRICITY EXCHANGE RATES EXPECTED VALUE FISCAL POLICY FORECASTS FOREIGN ASSETS GDP GENERATION GENERATION CAPACITY GOVERNMENT EXPENDITURES GOVERNMENT INVESTMENT GOVERNMENT SPENDING GROWTH MODEL GROWTH MODELS GROWTH RATE HOUSING HUMAN CAPITAL INCOME INCOME DISTRIBUTION INCOME ELASTICITY INCOME LEVELS INEFFICIENCY INFRASTRUCTURE ASSETS INFRASTRUCTURE CONGESTION INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE ECONOMICS INFRASTRUCTURE INVESTMENT INFRASTRUCTURE INVESTMENTS INFRASTRUCTURE PROVISION INFRASTRUCTURE SECTOR INFRASTRUCTURE SERVICES INTERNATIONAL ENERGY INTERNATIONAL ROAD FEDERATION INVENTORY LAND TRANSPORT MACROECONOMICS MARGINAL PRODUCT MARGINAL PRODUCTIVITY MIDDLE INCOME COUNTRIES MIDDLE INCOME COUNTRY MULTIPLIERS OPEN ACCESS PER CAPITA INCOME POLITICAL ECONOMY PRIVATE SECTOR PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION INPUTS PRODUCTIVITY PUBLIC PUBLIC EXPENDITURE PUBLIC GOODS PUBLIC INFRASTRUCTURE PUBLIC INVESTMENT PUBLIC POLICIES PUBLIC SECTOR PURCHASING POWER RAILWAY RAILWAY NETWORK RAILWAYS REAL GDP ROAD ROAD INFRASTRUCTURE ROAD NETWORK ROAD SYSTEM ROAD TRANSPORT ROADS STATISTICAL ANALYSIS TAXATION TELECOMMUNICATIONS TELECOMMUNICATIONS SERVICES TOTAL FACTOR PRODUCTIVITY TRANSITION ECONOMIES TRANSPORT TRANSPORT INFRASTRUCTURE UNEMPLOYMENT URBAN ECONOMICS AIC BANDWIDTH BANK OF SPAIN CAPITAL STOCK CONSTANT RETURNS TO SCALE CONVERGENCE HYPOTHESIS DEFICITS DEPRECIATION RATE DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DYNAMIC ANALYSIS ECONOMETRIC METHODOLOGY ECONOMETRIC THEORY ECONOMETRICS ECONOMIC ANALYSIS ECONOMIC DEVELOPMENT ECONOMIC DYNAMICS ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC RESEARCH ECONOMICS OF INFRASTRUCTURE ELASTICITIES ELASTICITY ELECTRIC POWER ELECTRICITY EXCHANGE RATES EXPECTED VALUE FISCAL POLICY FORECASTS FOREIGN ASSETS GDP GENERATION GENERATION CAPACITY GOVERNMENT EXPENDITURES GOVERNMENT INVESTMENT GOVERNMENT SPENDING GROWTH MODEL GROWTH MODELS GROWTH RATE HOUSING HUMAN CAPITAL INCOME INCOME DISTRIBUTION INCOME ELASTICITY INCOME LEVELS INEFFICIENCY INFRASTRUCTURE ASSETS INFRASTRUCTURE CONGESTION INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE ECONOMICS INFRASTRUCTURE INVESTMENT INFRASTRUCTURE INVESTMENTS INFRASTRUCTURE PROVISION INFRASTRUCTURE SECTOR INFRASTRUCTURE SERVICES INTERNATIONAL ENERGY INTERNATIONAL ROAD FEDERATION INVENTORY LAND TRANSPORT MACROECONOMICS MARGINAL PRODUCT MARGINAL PRODUCTIVITY MIDDLE INCOME COUNTRIES MIDDLE INCOME COUNTRY MULTIPLIERS OPEN ACCESS PER CAPITA INCOME POLITICAL ECONOMY PRIVATE SECTOR PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION INPUTS PRODUCTIVITY PUBLIC PUBLIC EXPENDITURE PUBLIC GOODS PUBLIC INFRASTRUCTURE PUBLIC INVESTMENT PUBLIC POLICIES PUBLIC SECTOR PURCHASING POWER RAILWAY RAILWAY NETWORK RAILWAYS REAL GDP ROAD ROAD INFRASTRUCTURE ROAD NETWORK ROAD SYSTEM ROAD TRANSPORT ROADS STATISTICAL ANALYSIS TAXATION TELECOMMUNICATIONS TELECOMMUNICATIONS SERVICES TOTAL FACTOR PRODUCTIVITY TRANSITION ECONOMIES TRANSPORT TRANSPORT INFRASTRUCTURE UNEMPLOYMENT URBAN ECONOMICS Calderón, César Moral-Benito, Enrique Servén, Luis Is Infrastructure Capital Productive? A Dynamic Heterogeneous Approach |
| description |
This paper offers an empirical
evaluation of the output contribution of infrastructure.
Drawing from a large data set on infrastructure stocks
covering 88 countries and spanning the years 1960-2000, and
using a panel time-series approach, the paper estimates a
long-run aggregate production function relating GDP to human
capital, physical capital, and a synthetic measure of
infrastructure given by the first principal component of
infrastructure endowments in transport, power, and
telecommunications. Tests of the cointegration rank allowing
it to vary across countries reveal a common rank with a
single cointegrating vector, which is taken to represent the
long-run production function. Estimation of its parameters
is performed using the pooled mean group estimator, which
allows for unrestricted short-run parameter heterogeneity
across countries while imposing the (testable) restriction
of long-run parameter homogeneity. The long-run elasticity
of output with respect to the synthetic infrastructure index
ranges between 0.07 and 0.10. The estimates are highly
significant, both statistically and economically, and robust
to alternative dynamic specifications and infrastructure
measures. There is little evidence of long-run parameter
heterogeneity across countries, whether heterogeneity is
unconditional, or conditional on their level of development,
population size, or infrastructure endowments. |
| topic_facet |
AIC BANDWIDTH BANK OF SPAIN CAPITAL STOCK CONSTANT RETURNS TO SCALE CONVERGENCE HYPOTHESIS DEFICITS DEPRECIATION RATE DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DYNAMIC ANALYSIS ECONOMETRIC METHODOLOGY ECONOMETRIC THEORY ECONOMETRICS ECONOMIC ANALYSIS ECONOMIC DEVELOPMENT ECONOMIC DYNAMICS ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC RESEARCH ECONOMICS OF INFRASTRUCTURE ELASTICITIES ELASTICITY ELECTRIC POWER ELECTRICITY EXCHANGE RATES EXPECTED VALUE FISCAL POLICY FORECASTS FOREIGN ASSETS GDP GENERATION GENERATION CAPACITY GOVERNMENT EXPENDITURES GOVERNMENT INVESTMENT GOVERNMENT SPENDING GROWTH MODEL GROWTH MODELS GROWTH RATE HOUSING HUMAN CAPITAL INCOME INCOME DISTRIBUTION INCOME ELASTICITY INCOME LEVELS INEFFICIENCY INFRASTRUCTURE ASSETS INFRASTRUCTURE CONGESTION INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE ECONOMICS INFRASTRUCTURE INVESTMENT INFRASTRUCTURE INVESTMENTS INFRASTRUCTURE PROVISION INFRASTRUCTURE SECTOR INFRASTRUCTURE SERVICES INTERNATIONAL ENERGY INTERNATIONAL ROAD FEDERATION INVENTORY LAND TRANSPORT MACROECONOMICS MARGINAL PRODUCT MARGINAL PRODUCTIVITY MIDDLE INCOME COUNTRIES MIDDLE INCOME COUNTRY MULTIPLIERS OPEN ACCESS PER CAPITA INCOME POLITICAL ECONOMY PRIVATE SECTOR PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION INPUTS PRODUCTIVITY PUBLIC PUBLIC EXPENDITURE PUBLIC GOODS PUBLIC INFRASTRUCTURE PUBLIC INVESTMENT PUBLIC POLICIES PUBLIC SECTOR PURCHASING POWER RAILWAY RAILWAY NETWORK RAILWAYS REAL GDP ROAD ROAD INFRASTRUCTURE ROAD NETWORK ROAD SYSTEM ROAD TRANSPORT ROADS STATISTICAL ANALYSIS TAXATION TELECOMMUNICATIONS TELECOMMUNICATIONS SERVICES TOTAL FACTOR PRODUCTIVITY TRANSITION ECONOMIES TRANSPORT TRANSPORT INFRASTRUCTURE UNEMPLOYMENT URBAN ECONOMICS |
| author |
Calderón, César Moral-Benito, Enrique Servén, Luis |
| author_facet |
Calderón, César Moral-Benito, Enrique Servén, Luis |
| author_sort |
Calderón, César |
| title |
Is Infrastructure Capital Productive? A Dynamic Heterogeneous Approach |
| title_short |
Is Infrastructure Capital Productive? A Dynamic Heterogeneous Approach |
| title_full |
Is Infrastructure Capital Productive? A Dynamic Heterogeneous Approach |
| title_fullStr |
Is Infrastructure Capital Productive? A Dynamic Heterogeneous Approach |
| title_full_unstemmed |
Is Infrastructure Capital Productive? A Dynamic Heterogeneous Approach |
| title_sort |
is infrastructure capital productive? a dynamic heterogeneous approach |
| publishDate |
2011-06-01 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110615103058 https://hdl.handle.net/10986/3446 |
| work_keys_str_mv |
AT calderoncesar isinfrastructurecapitalproductiveadynamicheterogeneousapproach AT moralbenitoenrique isinfrastructurecapitalproductiveadynamicheterogeneousapproach AT servenluis isinfrastructurecapitalproductiveadynamicheterogeneousapproach |
| _version_ |
1807159482416889856 |