Infrastructure, Specialization, and Economic Growth

Posted: 4 Oct 2000

See all articles by Spiros Bougheas

Spiros Bougheas

University of Nottingham - School of Economics

Panicos Demetriades

University of Leicester - Department of Economics

Theofanis P. Mamuneas

University of Cyprus - Department of Economics

Abstract

We introduce infrastructure as a cost-reducing technology in Romer's (1987) model of endogenous growth. We show that infrastructure can promote specialization and long-run growth, even though its reflects on the latter is non-monotonic, reflecting its resource costs. We provide evidence using data from the U.S. Census of Manufactures that suggests that the degree of specialization is positively correlated with core infrastructure, as predicted by the model. We also provide evidence from cross-country regressions, using physical measures of infrastructure provision, that shows a robust non-monotonic relationship between infrastructure and growth.

JEL Classification: O41, O50

Suggested Citation

Bougheas, Spiros and Demetriades, Panicos O. and Mamuneas, Theofanis P., Infrastructure, Specialization, and Economic Growth. Canadian Journal of Economics, Vol. 33, Issue 2, May 2000. Available at SSRN: https://ssrn.com/abstract=238572

Spiros Bougheas (Contact Author)

University of Nottingham - School of Economics ( email )

University Park
Nottingham, NG7 2RD
United Kingdom

Panicos O. Demetriades

University of Leicester - Department of Economics ( email )

Department of Economics
Leicester LE1 7RH, Leicestershire LE1 7RH
United Kingdom
+ 44 116 252 2835 (Phone)
+ 44 116 252 2908 (Fax)

HOME PAGE: http://www.le.ac.uk/economics/staff/pd28.html

Theofanis P. Mamuneas

University of Cyprus - Department of Economics ( email )

75 Kallipoleos Street
P.O. Box 20537
1678 Nicosia
Cyprus

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