Infrastructure and Growth in South Africa: Direct and Indirect Productivity Impacts of 19 Infrastructure Measures
Johannes W. Fedderke
University of the Witwatersrand - School of Economics and Business Sciences; University of Cape Town
September 8, 2009
World Development, Vol. 37, No. 9, 2009
Empirical explorations of the growth and aggregate productivity impacts of infrastructure have been characterized by ambiguous (countervailing signs) results with little robustness. This paper, utilizing panel data for South African manufacturing over the 1970–2000 period, and a range of 19 infrastructure measures, explores the question of infrastructure endogeneity in output equations. The paper develops an instrumentation strategy generalizable to other contexts. Controlling for the possibility of endogeneity in the infrastructure measures renders the impact of infrastructure capital not only positive, but of economically meaningful magnitudes.
Number of Pages in PDF File: 18
Keywords: growth, productivity, infrastructure, Africa, South Africa
JEL Classification: F43, O4, H54, N17Accepted Paper Series
Date posted: April 10, 2011
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