Infrastructural investment in long-run economic growth: South Africa 1875–2001

Fedderke, Johannes; Perkins, Peter; Luiz, John

doi:10.1016/j.worlddev.2005.11.004

Cited by 176 publications

(111 citation statements)

References 36 publications

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“…They reported positive and significant output contributions of three types of infrastructure assets, i.e., telecommunications, transport and power. Fedderke, Perkins and Luiz (2006) attempted to explain the relationship between investment in economic infrastructure and long-term economic growth by examining the experience of South Africa in a time-series context. Their results indicated that infrastructure had both a direct and an indirect impact on output, and that it may have had an important role in pushing the country onto a higher long-term growth trajectory.…”

Section: Relationship Between Infrastructure and Growthmentioning

confidence: 99%

Trade, Infrastructure and Income Inequality in Selected Asian Countries: An Empirical Analysis

Raychaudhuri

2016

International Trade and International Finance

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Section: Relationship Between Infrastructure and Growthmentioning

confidence: 99%

Trade, Infrastructure and Income Inequality in Selected Asian Countries: An Empirical Analysis

Raychaudhuri

2016

International Trade and International Finance

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“…They reported that growth was largely driven by private investment and the lack of strong inference on the effects of PI and public consumption on economic growth. Fedderke, et al (2006) examined the relationship between investment in economic infrastructure and long-run economic growth for South Africa. The main fi ndings were that investment in infrastructure enhanced economic growth both directly and indirectly (by raising the marginal productivity of capital).…”

Section: Review Of Selected Previous Studiesmentioning

confidence: 99%

Public Investment and Output Performance: Evidence from Nigeria

Aregbeyen

Mohammed²

2016

Zagreb International Review of Economics and Business

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“…Therefore, if the country's level of GDP has reached the level determined by the steady state, the only way to accelerate economic growth (taking into account the dependency on road infrastructure only) is to improve the quality of road infrastructure or, other words, to reduce δ. 9 This will be investigated in more detail in Section 4.…”

Section: Solution Of Optimal Control Problemmentioning

confidence: 99%

“…The other school is that of the neo-classical approach, which treat infrastructure as a production factor in the same style as labor and capital and which belong mainly to the literature of endogenous growth modeling. Fedderke et al (2006), for example, carry out a time-series analysis for investment into road infrastructure and economic growth in South Africa and nd that the former does indeed lead to economic growth in South Africa, both by boosting GDP directly and by raising the marginal products of other production factors. They also test for the other direction of causality (i.e.…”

Section: Introductionmentioning

confidence: 99%

Development of Transportation Infrastructure in the Context of Economic Growth

Ortiz-Moctezuma¹,

Pivovarchuk²,

Szolgayová³

et al. 2009

Dynamic Systems, Economic Growth, and the Environment

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Developed road infrastructure is an essential factor facilitating and accelerating economic growth, which will in turn enable the addition of more roads. At the same time, the marginal benet of adding roads to a large stock of existing capacity might be diminishing. It is thus evident that the co-evolution of economic output and road infrastructure is rather intricate and deserves special attention. The model developed in this paper therefore investigates the interdependency between a country's economic growth and the development of transportation infrastructure in this country. To this end, a co-evolutionary perspective is developed, where the mutual inuence of the rate of economic growth and the capacity of transportation infrastructure are explicitly taken into account. This approach enables us to set up an optimal control problem, where the optimal investment rate is determined considering the co-evolutionary dynamics of GDP growth and capacity expansion. This model forms a comprehensive framework for understanding the underlying dynamics and the patterns of economic growth in relation to transport infrastructure. We nd an analytical solution for the innite horizon problem, where the control turns out to be a constant. The steady state is shown to depend crucially on the rate of physical decay of roads, which we think can be interpreted as an index of quality, and the speed of adjustment, at which the economy moves along a trajectory. Testing the model for the data of two countries, France and Finland, illustrates the usefulness of such an approach to real world problems and possibly policy recommendation, where the model would have to be adapted to the peculiarities of each country or region to make precise statements.

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Infrastructural investment in long-run economic growth: South Africa 1875–2001

Cited by 176 publications

References 36 publications

Trade, Infrastructure and Income Inequality in Selected Asian Countries: An Empirical Analysis

Trade, Infrastructure and Income Inequality in Selected Asian Countries: An Empirical Analysis

Public Investment and Output Performance: Evidence from Nigeria

Development of Transportation Infrastructure in the Context of Economic Growth

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