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

20 Pages Posted: 4 May 2004

Abstract

We provide evidence on the link between infrastructure development and the distribution of income for the period 1960-97. We use roads, railways, telecommunications, and energy measures. The approach is comprehensive as individual measures and composite indices are used. Cross-country and panel regressions are applied. In the latter, we apply GMM dynamic methods to minimize for endogeneity problems. We find that both quantity 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

Calderon, Cesar A. and Chong, Alberto, Volume and Quality of Infrastructure and the Distribution of Income: An Empirical Investigation. Available at SSRN: https://ssrn.com/abstract=522056

Cesar A. Calderon

Central Bank of Chile ( email )

Agustinas 1180
Santiago
Chile

Alberto Chong (Contact Author)

University of Ottawa ( email )

2292 Edwin Crescent
Ottawa, Ontario K2C 1H7
Canada

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