The Nexus between Infrastructure  Investment and Economic Growth in the Mexican Urban Areas

Germán–Soto, Vicente; Bustillos, Héctor Alonso Barajas

doi:10.4236/me.2014.513112

Cited by 14 publications

(14 citation statements)

References 19 publications

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“…About infrastructure -Growth nexus in the long run, our findings is similar to the result of Sawada (2012); Mahmud and Sawada (2015); Achour and Belloumi (2016); Chingoiro and Mbulawa (2016); Raychaudhuri and De (2016); Sawada et al (2017); Udah and Bassey (2017); Khandker and Samad (2018). However, it is in contrast to the results of Holtz-Eakin and Schwartz (1994); Bougheas et al (2000); Songco 2002; German-Soto et al (2017). In the context of Technology-Growth nexus, our results is partially supported by Lee et al (2005); Ishida (2015);…”

Section: Long Run Dynamicssupporting

confidence: 87%

“…On the contrary, the relationships between infrastructure investment and institutional quality on economic growth had been insignificant because of the corruption. The study conducted by German-Soto et al (2017) in Mexican urban areas reveals that certain kinds of infrastructure variables like water supply, road infrastructure, vehicle density, highways, and a social infrastructure index have no significant impact on economic growth.…”

Section: Literature Reviewmentioning

confidence: 99%

“…There are some studies which found negative or mixed results of different infrastructure proxies on different macroeconomic variables of economic growth (Day and Zou, 1994;Evans and Karras, 1994;Gramlich, 1994;Holtz-Eakin and Schwartz, 1994;Ferreira and Issler, 1995;Bougheas et al, 2000;Brenneman and Kerf, 2002;Okoh and Ebi, 2013;German-Soto et al, 2017).…”

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confidence: 99%

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Technological Innovation, Infrastructure and Industrial Growth in Bangladesh: Empirical Evidence from ARDL and Granger Causality Approach

Fan

Hossain

Sultanuzzaman

2018

Asian Economic and Financial Review

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In this study, we examined the empirical cointegration, long and short-run dynamics and relationships between technological innovation, infrastructure and industrial growth in Bangladesh over the period of 1974-2016. The ARDL Bounds Test methodology and Granger Causality test in an augmented VECM framework were applied. The ARDL bounds tests and additional cross-checking tests, undoubtedly confirmed long run as well as short-run cointegration between the three variables in Bangladesh. The obtained results expressed that infrastructure has a positive impact on the industrial growth but technological innovation has a negative impact on it in the long run. In the short run, infrastructure and technological innovation both have a positive and significant impact on industrial growth. The VECM Granger causality test reveals the existence of a bi-directional causality running between Industrial growth and infrastructure; and infrastructure and technological innovation. On the other hand, unidirectional causality is running from industrial growth to technological innovation. The findings of the Granger causality test supports the results obtained in the ARDL approach in our study. The results obtained from this empirical analysis have an important policy implication for a developing country like Bangladesh as well as other developing countries. 1. INTRODUCTION The founding partner, Roger McNamee, of the Venture Capital Firm Elevation Partners of US, commented that "We need to stop thinking about infrastructure as an economic stimulant and start thinking about it as a strategy. Economic stimulants produce Bridges to Nowhere. Strategic investment in infrastructure produces a foundation for long-term growth". In the same paper, investigation conducted on "Industry and Infrastructure" of India, it was revealed that vital factors for economic growth and development are to promote inclusive employment-intensive industry and to build resilient infrastructure (Hogan and McNamee, n.d). So there is a close relationship between infrastructure and industrial development or Economic development. All the activities of human being are somehow related to economic development and industrial development is one of the major components of it Rahman and Kashem (2017). From the economic growth point of view, the world has achieved a significant development in different kinds of infrastructure as the roads, railroads, airlines, giant bridges, high rise skyscrapers, tunnels, and industries etc. According to Ayeche et al. (2016) the global economic system has Asian Economic and Financial Review

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Section: Long Run Dynamicssupporting

confidence: 87%

Section: Literature Reviewmentioning

confidence: 99%

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Technological Innovation, Infrastructure and Industrial Growth in Bangladesh: Empirical Evidence from ARDL and Granger Causality Approach

Fan

Hossain

Sultanuzzaman

2018

Asian Economic and Financial Review

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“…Existing studies use two approaches to address this issue. Some studies use a single infrastructure type, such as road (Estache et al 2005;German-Soto & Bustillos 2014); railway (Herrerias 2010;Banerjee et al 2012;Mostert & Van Heerden 2015;Shi et al 2017) or telecommunication (Czernich et al 2011) to represent infrastructure. However, using a single infrastructure type may not correctly estimate the true state of infrastructure in a region.…”

Section: Measurement Of Variablesmentioning

confidence: 99%

“…Many efforts have been made in the literature to measure the economic growth and social welfare impacts of infrastructure development, both physical capital and human capital (see e.g., Calderón et al 2015;Chakamera and Alagidede, 2018;Kodongo and Ojah, 2016;German-Soto and Bustillos, 2014;Calderón and Servén, 2010). However, there does not exist a consensus in the literature on the relationship between infrastructure investment and economic growth.…”

Section: Introductionmentioning

confidence: 99%

Infrastructure, Economic Growth, and Poverty: A Review

Timilsina¹,

Song²

2020

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The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

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Enhancing sustainable infrastructure development: A boon to poverty reduction in Nigeria

Fagbemi

Osinubi

Adeosun

2022

World Development Sustainability

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The Nexus between Infrastructure Investment and Economic Growth in the Mexican Urban Areas

Cited by 14 publications

References 19 publications

Technological Innovation, Infrastructure and Industrial Growth in Bangladesh: Empirical Evidence from ARDL and Granger Causality Approach

Technological Innovation, Infrastructure and Industrial Growth in Bangladesh: Empirical Evidence from ARDL and Granger Causality Approach

Infrastructure, Economic Growth, and Poverty: A Review

Enhancing sustainable infrastructure development: A boon to poverty reduction in Nigeria

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