Causality between Public Investment in Transport and Communication and Economic Growth
University of Nottingham Research Paper No. 2005/10
20 Pages Posted: 2 Aug 2005
This paper aims to provide an explanation for the robust and consistent relationship between public investment in transport and communication and economic growth that has frequently surfaced in recent empirical studies. Using both informal and formal causality tests, the paper finds that, for a set of developing countries, the strong association is the result of the effect running from growth to public investment rather than vice versa.
Keywords: Public investment,transport and communication, economic growth
JEL Classification: O42, E62
Suggested Citation: Suggested Citation