Infrastructure Policy for Shared Growth Post-2008: More and Better, or Simply More Complex?

Estache, Antonio

doi:10.1596/9780821389423_ch04

Cited by 1 publication

(1 citation statement)

References 25 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…This is in the order of magnitude of what poor countries should have (see Fosu et al (2016) for Sub-Saharan Africa and Estache (2010, Table 2) for what is required according to international institutions' estimates). Countries with very good infrastructure, high population densities or high degrees of urbanization may have lower optimal rates (Estache, 2010;Esfahani and Ramirez 2003).…”

Section: Transitory and Permanent Shocksmentioning

confidence: 99%

A semi-endogenous growth model with public factors, imported capital goods, and limited export demand for developing countries

Hallonsten

Ziesemer

2019

Journal of Applied Economics

View full text Add to dashboard Cite

We build a semi-endogenous growth model for developing countries with non-rivalrous public factors, imported capital goods, and an export demand function. The model exhibits the three-way interaction between public and private investment and trade shown recently in the empirical literature. A parameter for government-investment inefficiency has transitional growth effects distorting between public investment and private capital, consumption, and exports, the latter biasing the terms of trade. Our analysis of a vector error-correction model (VECM) for Trinidad &Tobago shows that additional expenditure for public investment increases output less than taxes decrease per capita consumption and therefore is sub-optimal there. Both temporary and permanent shocks on public investment have level effects supporting semi-endogenous growth modeling and demonstrate that the VECM effects are in line with the logic of the theoretical model; terms of trade are endogenous.

show abstract

Section: Transitory and Permanent Shocksmentioning

confidence: 99%