Infrastructure and Economic Development in Sub-Saharan Africa

An adequate supply of infrastructure services has long been viewed by both academics and policy makers as a key ingredient for economic development. Sub-Saharan Africa ranks consistently at the bottom of all developing regions in terms of infrastructure performance, and an increasing number of observers point to deficient infrastructure as a major obstacle for growth and poverty reduction across the region. This paper offers an empirical assessment of the impact of infrastructure development on growth and inequality, with a focus on Sub-Saharan Africa. The paper uses a comparative cross-regional perspective to place Africa's experience in the international context. Drawing from an updated data set of infrastructure quantity and quality indicators covering more than 100 countries and spanning the years 1960-2005, the paper estimates empirical growth and inequality equations including a standard set of control variables augmented by infrastructure quantity and quality measures, and controlling for the potential endogeneity of the latter. The estimates illustrate the potential contribution of infrastructure development to growth and equity across Africa.

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Bibliographic Details
Main Authors: Calderón, César, Servén, Luis
Language:English
Published: World Bank, Washington, DC 2008-09
Subjects:ACCESS REGULATION, ACCESS TO SAFE WATER, ACCOUNTING, AGRICULTURE, BENCHMARK, BENCHMARKING, BENCHMARKS, CAPITAL ACCUMULATION, CAPITAL COSTS, CAPITAL EXPENDITURE, CAPITAL STOCK, CONDITIONAL CONVERGENCE, CORRELATION ANALYSIS, CURRENT EXPENDITURES, DEFICITS, DEVELOPMENT ECONOMICS, DISTRIBUTION LOSSES, DISTRIBUTION OF INCOME, DRIVERS, DYNAMIC ANALYSIS, ECONOMETRIC METHODOLOGY, ECONOMETRICS, ECONOMIC DEVELOPMENT, ECONOMIC DYNAMICS, ECONOMIC GROWTH, ECONOMIC INFRASTRUCTURE, ELECTRIC POWER, ELECTRICITY, ELECTRICITY SUPPLY, EMPLOYMENT, ENDOGENOUS VARIABLES, EXCESS INCOME, EXPORTS, FISCAL FEDERALISM, FISCAL POLICY, FORECASTS, FORMAL ANALYSIS, GDP, GDP PER CAPITA, GENERATION, GENERATION CAPACITY, GINI COEFFICIENT, GOOD TRANSPORT, GOVERNMENT EXPENDITURES, GOVERNMENT SPENDING, GROWTH MODEL, GROWTH RATE, GROWTH RATES, HIGH TRANSPORT, HUMAN CAPITAL, INCOME DISTRIBUTION, INCOME GROUPS, INCOME LEVELS, INFLATION, INFLATION RATE, INFRASTRUCTURE ASSETS, INFRASTRUCTURE CONGESTION, INFRASTRUCTURE DEVELOPMENT, INFRASTRUCTURE INVESTMENT, INFRASTRUCTURE PERFORMANCE, INFRASTRUCTURE PRIVATIZATION, INFRASTRUCTURE PROJECTS, INFRASTRUCTURE PROVISION, INFRASTRUCTURE REFORM, INFRASTRUCTURE REHABILITATION, INFRASTRUCTURE SERVICES, INFRASTRUCTURE SPENDING, INSPECTION, INVENTORY, LABOR MARKETS, LATIN AMERICAN, LIVING STANDARDS, MACROECONOMIC POLICY, MACROECONOMICS, MARGINAL PRODUCT, MARKET ACCESS, MIDDLE INCOME COUNTRIES, O&M, OUTPUT PER CAPITA, PER CAPITA INCOME, POLITICAL ECONOMY, POPULATION DENSITY, POSITIVE EFFECTS, POWER, PRICE STABILITY, PRIVATE CAPITAL, PRIVATE SECTOR, PRODUCTION FUNCTION, PRODUCTION INPUTS, PRODUCTIVITY, PROVISION OF INFRASTRUCTURE, PUBLIC, PUBLIC EXPENDITURE, PUBLIC GOODS, PUBLIC INFRASTRUCTURE, PUBLIC INVESTMENT, PUBLIC INVESTMENT IN INFRASTRUCTURE, PUBLIC POLICIES, PUBLIC PROCUREMENT, PUBLIC RESOURCES, PUBLIC SECTOR, RAILWAYS, RANDOM WALK, REAL GDP, REGRESSION ANALYSIS, ROAD, ROAD MAINTENANCE, ROAD NETWORK, ROAD QUALITY, RURAL INFRASTRUCTURE, RURAL ROADS, SANITATION, SUB- SAHARAN AFRICA, SUB-SAHARAN AFRICA, TAX, TAXATION, TELECOMMUNICATIONS, TELECOMMUNICATIONS REFORM, TRADE VOLUME, TRANSACTION COSTS, TRANSPORT COSTS, TRANSPORT INFRASTRUCTURE, TRANSPORT SECTOR, TRANSPORTATION, TRUE, UTILITY FUNCTION, UTILITY PRIVATIZATION, WAGES, WEALTH, WESTERN EUROPE,
Online Access:http://documents.worldbank.org/curated/en/2008/09/9828514/infrastructure-economic-development-sub-saharan-africa
https://hdl.handle.net/10986/6988
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Summary:An adequate supply of infrastructure services has long been viewed by both academics and policy makers as a key ingredient for economic development. Sub-Saharan Africa ranks consistently at the bottom of all developing regions in terms of infrastructure performance, and an increasing number of observers point to deficient infrastructure as a major obstacle for growth and poverty reduction across the region. This paper offers an empirical assessment of the impact of infrastructure development on growth and inequality, with a focus on Sub-Saharan Africa. The paper uses a comparative cross-regional perspective to place Africa's experience in the international context. Drawing from an updated data set of infrastructure quantity and quality indicators covering more than 100 countries and spanning the years 1960-2005, the paper estimates empirical growth and inequality equations including a standard set of control variables augmented by infrastructure quantity and quality measures, and controlling for the potential endogeneity of the latter. The estimates illustrate the potential contribution of infrastructure development to growth and equity across Africa.