Volume and Quality of Infrastructure and the Distribution of Income: An Empirical Investigation

30 Pages Posted: 21 Apr 2011

Date Written: April 2001

Abstract

We provide evidence on the link between infrastructure development and the distribution of income for the period 1960-1995. To do this, we use several proxies such as roads, railways, telecommunications and energy measures. The approach is comprehensive as cross-country and panel methods are applied. In the latter case, we apply GMM dynamic panel methods in order to minimize for endogeneity problems. Both quantity of infrastructure and quality of infrastructure are negatively linked with income inequality. The quantitative link tends to be stronger in developing countries than the qualitative link. These findings hold when using different econometric methods and most infrastructure measures.

Suggested Citation

Chong, Alberto and Calderon, Cesar A., Volume and Quality of Infrastructure and the Distribution of Income: An Empirical Investigation (April 2001). IDB Working Paper No. 377, Available at SSRN: https://ssrn.com/abstract=1817247 or http://dx.doi.org/10.2139/ssrn.1817247

Alberto Chong (Contact Author)

University of Ottawa ( email )

2292 Edwin Crescent
Ottawa, Ontario K2C 1H7
Canada

Cesar A. Calderon

Central Bank of Chile ( email )

Agustinas 1180
Santiago
Chile

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