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Jose M, Gimenez ; Yabibal M, Walle ; Yitagesu Zewdu, Zergawu ; Yabibal, Walle. (2018) The Joint Impact of Infrastructure and Institutions on Economic Growth.
In: Working Papers. RePEc:urv:wpaper:2072/332584.
Full description at Econpapers
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Furthermore, Canning and Pedroni (2008) show that the proportion of investment going to infrastructure is Äit “ Ǟ ` it where it is a zero mean stationary series. Accordingly, in the endogenous growth model, a positive shock to the infrastructure capital will increase income per capita when Ǟ ă Ä˚ and income per capita will decrease when Ǟ ą Ä˚ .6 The marginal cost of the increased infrastructure capital is the diversion of resources from other productive sectors, while the marginal benefit is the gain in the long-run income (Straub, 2011).
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