The joint impact of infrastructure and institutions on economic growth
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This paper examines the joint impact of infrastructure capital and institutional quality on economic growth using a large panel dataset covering 99 countries and spanning the years 1980–2015. The empirical strategy involves estimating a simple growth model where, in addition to standard controls, infrastructure, institutional quality, and their interaction are included as explanatory variables. Potential endogeneity concerns are addressed by employing generalized method of moments estimators that utilize internal instruments. We find that the interaction terms between infrastructure capital and institutional quality show a positive and significant impact on economic growth. These results are robust to a variety of alternative specifications and institutional quality measures. Hence, our results suggest that maximizing returns from infrastructure capital requires improving the quality of institutions.
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Infrastructure development has often been heavily tied to institutional characteristics of countries.
“the issue of infrastructure development has often been heavily tied to institutional characteristics of countries”
From The manufacturing output effects of infrastructure development, liberalization and governance: evidence from Sub-Saharan Africa (2022) · cites this paper as Zergawu et al., 2020
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Cited by
Sorted by citations
Nnyanzi, J. B., Kavuma, S., Sseruyange, J., & Nanyiti, A. (2022) · Journal of Industrial and Business Economics · doi:10.1007/s40812-022-00216-2 · Cited by 14 · see citing works
- Authors
- Zergawu, Y. Z., Walle, Y. M., & Giménez-Gómez, J.-M.
- Affiliations
- Universitat Rovira i Virgili (ES)
- University of Göttingen (DE)
- Corresponding author
- Zergawu, Yitagesu Zewdu
- Venue
- Journal of Institutional Economics
- Publisher
- Cambridge University Press (CUP)
- Published
- 2020-02-20
- Volume
- 16
- Issue
- 4
- Pages
- 481-502
- ISSN
- 1744-1374 (ISSN-L)
- 1744-1382
- OpenAlex
- W2922331374
- Cited by
- 5
- References
- 51
- Citations by year
- 2025: 1 · 2024: 1 · 2023: 1 · 2021: 2
- FWCI
- 0.64
- Type
- journal article
- Language
- en
- Open access
- bronze
- doi.org
- Locations
- Journal of Institutional Economics (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- GoeScholar The Publication Server of the Georg-August-Universität Göttingen (Georg-August-Universität Göttingen) (submittedVersion, other-oa)
- RECERCAT (Consorci de Serveis Universitaris de Catalunya) (submittedVersion, cc-by-nc-nd)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Fiscal Policy and Economic Growth
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic Growth and Productivity
- Social Sciences › Demography › Culture, Economy, and Development Studies
- Keywords
- infrastructure capital, institutional quality, economic growth, institutional quality improvement, cross-country growth
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