Nothing Special   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/sae/inrsre/v24y2001i1p103-133.html
   My bibliography  Save this article

Investing in Rural Infrastructure

Author

Listed:
  • William F. Fox

    (Department of Economics, University of Tennessee, Knoxville, TN, billfox@utk.edu)

  • Sanela Porca

    (Department of Economics, University of Tennessee, sporca@utk.edu)

Abstract
Infrastructure is best envisioned as services that come from a set of public works, not as physical facilities. In concept, infrastructure can expand rural economies by raising productivity levels, allowing expansion in the use of other resources, and attracting resources. Empirical research evidences that at the margin, the net effect of the three factors is for infrastructure to have only a modest effect on economic performance. Infrastructure investments will normally have their biggest impact in economically integrated and intermediate rural areas. Nonetheless, a basic complement of infrastructure is essential to support economic activity, but this set should be seen as accommodating rather than causing growth. Local, market-based approaches are normally the best way to develop the infrastructure and to ensure that an area has the basic infrastructure that can be maintained, supported, and used effectively.

Suggested Citation

  • William F. Fox & Sanela Porca, 2001. "Investing in Rural Infrastructure," International Regional Science Review, , vol. 24(1), pages 103-133, January.
    • Handle: RePEc:sae:inrsre:v:24:y:2001:i:1:p:103-133
    DOI: 10.1177/016001701761012971
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/016001701761012971
    Download Restriction: no
    File URL: https://libkey.io/10.1177/016001701761012971?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Rietveld, Piet, 1989. "Infrastructure and Regional Development: A Survey of Multiregional Economic Models," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 23(4), pages 255-274.
    2. Kevin T. Duffy-Deno & Randall W. Eberts, 1996. "Public Infrastructure and Regional Economic Development: A Simultaneous Equations Approach," Book chapters authored by Upjohn Institute researchers, in: Niles Hansen & Kenneth J. Button & Peter Nijkamp (ed.),Regional Policy and Regional Integration, pages 295-309, W.E. Upjohn Institute for Employment Research.
    3. Robert Ford & Pierre Poret, 1991. "Infrastructure and Private-Sector Productivity," OECD Economics Department Working Papers 91, OECD Publishing.
    4. Aschauer, David Alan, 1989. "Is public expenditure productive?," Journal of Monetary Economics, Elsevier, vol. 23(2), pages 177-200, March.
    5. Gramlich, Edward M, 1994. "Infrastructure Investment: A Review Essay," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1176-1196, September.
    6. John A. Tatom, 1991. "Public capital and private sector performance," Review, Federal Reserve Bank of St. Louis, issue May, pages 3-15.
    7. Laura S. Rubin, 1991. "Productivity and the public capital stock: another look," Working Paper Series / Economic Activity Section 118, Board of Governors of the Federal Reserve System (U.S.).
    8. Peter J. Wylie, 1996. "Infrastructure and Canadian Economic Growth 1946-1991," Canadian Journal of Economics, Canadian Economics Association, vol. 29(s1), pages 350-355, April.
    9. Nijkamp, Peter, 1986. "Infrastructure and Regional Development: A Multidimensional Policy Analysis," Empirical Economics, Springer, vol. 11(1), pages 1-21.
    10. David Alan Aschauer, 1990. "Why is infrastructure important?," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 34, pages 21-68.
    11. John G. Fernald, 1999. "Roads to Prosperity? Assessing the Link between Public Capital and Productivity," American Economic Review, American Economic Association, vol. 89(3), pages 619-638, June.
    12. Cronin, Francis J. & Colleran, Elisabeth K. & Herbert, Paul L. & Lewitzky, Steven, 1993. "Telecommunications and growth : The contribution of telecommunications infrastructure investment to aggregate and sectoral productivity," Telecommunications Policy, Elsevier, vol. 17(9), pages 677-690, December.
    13. Martin, Philippe & Rogers, Carol Ann, 1994. "Trade Effects of Regional Aid," CEPR Discussion Papers 910, C.E.P.R. Discussion Papers.
    14. Shah, Anwar, 1992. "Dynamics of Public Infrastructure, Industrial Productivity and Profitability," The Review of Economics and Statistics, MIT Press, vol. 74(1), pages 28-36, February.
    15. Garcia-Mila, Teresa, 1989. "Some empirical evidence on government purchase multipliers," Economics Letters, Elsevier, vol. 31(4), pages 375-380, December.
    16. Alicia H. Munnell, 1990. "How does public infrastructure affect regional economic performance?," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 34, pages 69-112.
    17. Baldwin,Richard & Haapararanta,Pertti & Kiander,Jaakko (ed.), 1995. "Expanding Membership of the European Union," Cambridge Books, Cambridge University Press, number 9780521481342.
    18. Holtz-Eakin, Douglas, 1994. "Public-Sector Capital and the Productivity Puzzle," The Review of Economics and Statistics, MIT Press, vol. 76(1), pages 12-21, February.
    19. Ernst R. Berndt & Bengt Hansson, 1991. "Measuring the Contribution of Public Infrastructure Capital in Sweden," NBER Working Papers 3842, National Bureau of Economic Research, Inc.
    20. David Alan Aschauer, 1998. "The Role of Public Infrastructure Capital in Mexican Economic Growth," Economía Mexicana NUEVA ÉPOCA, CIDE, División de Economía, vol. 0(1), pages 47-78, January-J.
    21. Nadiri, M Ishaq & Mamuneas, Theofanis P, 1994. "The Effects of Public Infrastructure and R&D Capital on the Cost Structure and Performance of U.S. Manufacturing Industries," The Review of Economics and Statistics, MIT Press, vol. 76(1), pages 22-37, February.
    22. Garcia-Mila, Teresa & McGuire, Therese J., 1992. "The contribution of publicly provided inputs to states' economies," Regional Science and Urban Economics, Elsevier, vol. 22(2), pages 229-241, June.
    23. Shah, Anwar, 1988. "Public infrastructure and private sector profitability and productivity in Mexico," Policy Research Working Paper Series 100, The World Bank.
    24. Cummings, R. & Schulze, W. & Gerking, S. & Brookshire, D., 1986. "Measuring the elasticity of substitution of wages for municipal infrastructure: A comparison of the survey and wage hedonic approaches," Journal of Environmental Economics and Management, Elsevier, vol. 13(3), pages 269-276, September.
    25. Holtz-Eakin, Douglas & Schwartz, Amy Ellen, 1995. "Infrastructure in a structural model of economic growth," Regional Science and Urban Economics, Elsevier, vol. 25(2), pages 131-151, April.
    26. Randall W. Eberts, 1990. "Public infrastructure and regional economic development," Economic Review, Federal Reserve Bank of Cleveland, vol. 26(Q I), pages 15-27.
    27. Holtz-Eakin, Douglas & Lovely, Mary E., 1996. "Scale economies, returns to variety, and the productivity of public infrastructure," Regional Science and Urban Economics, Elsevier, vol. 26(2), pages 105-123, April.
    28. Lynde, Catherine & Richmond, James, 1992. "The Role of Public Capital in Production," The Review of Economics and Statistics, MIT Press, vol. 74(1), pages 37-44, February.
    29. Glomm, Gerhard & Ravikumar, B, 1992. "Public versus Private Investment in Human Capital Endogenous Growth and Income Inequality," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 818-834, August.
    30. Hulten, Charles R. & Schwab, Robert M., 1997. "A fiscal federalism approach to infrastructure policy," Regional Science and Urban Economics, Elsevier, vol. 27(2), pages 139-159, April.
    31. Ethier, Wilfred J, 1982. "National and International Returns to Scale in the Modern Theory of International Trade," American Economic Review, American Economic Association, vol. 72(3), pages 389-405, June.
    32. Neill, Jon R., 1996. "Fueling the engine of growth with investment in infrastructure: A lesson from neoclassical growth theory," Journal of Macroeconomics, Elsevier, vol. 18(3), pages 521-529.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yang Yu & Desmond Appiah & Bernard Zulu & Kofi Asamoah Adu-Poku, 2024. "Integrating Rural Development, Education, and Management: Challenges and Strategies," Sustainability, MDPI, vol. 16(15), pages 1-22, July.
    2. Michael J. Hicks, 2006. "Transportation and infrastructure, retail clustering, and local public finance: evidence from Wal-Mart's expansion," Regional Economic Development, Federal Reserve Bank of St. Louis, issue Oct, pages 100-114.
    3. Sathisha & Katti Medhavini S, 2023. "Examine the Rural Infrastructure Development Fund (RIDF) in Karnataka," Logistics, Supply Chain, Sustainability and Global Challenges, Sciendo, vol. 14(1), pages 1-11, December.
    4. Edward J. Malecki, 2001. "Going digital in rural America," Proceedings – Rural and Agricultural Conferences, Federal Reserve Bank of Kansas City, issue Sep, pages 49-68.
    5. Leck, Eran & Bekhor, Shlomo & Gat, Daniel, 2008. "Equity Impacts of Transportation Improvements On Core and Peripheral Cities," The Journal of Transport and Land Use, Center for Transportation Studies, University of Minnesota, vol. 1(2), pages 153-182.
    6. Brian Dabson, 2001. "Supporting rural entrepreneurship," Proceedings – Rural and Agricultural Conferences, Federal Reserve Bank of Kansas City, issue Sep, pages 35-47.
    7. Dagney Faulk & Michael Hicks, 2010. "The Economic Effects of Bus Transit in Small Cities," Public Finance Review, , vol. 38(5), pages 513-539, September.
    8. Deller, Steven & Whitacre, Brian, 2018. "Broadband’s Relationship to Rural Housing Values," Staff Paper Series 591, University of Wisconsin, Agricultural and Applied Economics.
    9. repec:oup:ajagec:v:99:y:2017:i:1:p:1-18. is not listed on IDEAS
    10. Moss, Timothy, 2011. "Planung technischer Infrastruktur für die Raumentwicklung: Ansprüche und Herausforderungen in Deutschland," Forschungs- und Sitzungsberichte der ARL: Aufsätze, in: Tietz, Hans-Peter & Hühner, Tanja (ed.), Zukunftsfähige Infrastruktur und Raumentwicklung: Handlungserfordernisse für Ver- und Entsorgungssysteme, volume 127, pages 73-94, ARL – Akademie für Raumentwicklung in der Leibniz-Gemeinschaft.
    11. Vachal, Kimberly & Bitzan, John & Button, Kenneth, 2004. "Transportation Quality Indices for Economic Analysis of Non-Metropolitan Cities," UGPTI Department Publication 231813, North Dakota State University, Upper Great Plains Transportation Institute.
    12. Michael J. Hicks & Michael LaFaive, 2011. "The Influence of Targeted Economic Development Tax Incentives on County Economic Growth: Evidence From Michigan’s MEGA Credits," Economic Development Quarterly, , vol. 25(2), pages 193-205, May.
    13. Peterson, Steven K. & Jessup, Eric L., 2008. "Evaluating the Relationship Between Transportation Infrastructure and Economic Activity: Evidence from Washington State," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 47(2).
    14. Ben C. Arimah, 2005. "What Drives Infrastructure Spending in Cities of Developing Countries?," Urban Studies, Urban Studies Journal Limited, vol. 42(8), pages 1345-1368, July.
    15. Zhong, Taiyang & Zhang, Xiaoling & Huang, Xianjin & Liu, Fang, 2019. "Blessing or curse? Impact of land finance on rural public infrastructure development," Land Use Policy, Elsevier, vol. 85(C), pages 130-141.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alfredo M. Pereira & Jorge M. Andraz, 2013. "On The Economic Effects Of Public Infrastructure Investment: A Survey Of The International Evidence," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 38(4), pages 1-37, December.
    2. Holmgren, Johan & Merkel, Axel, 2017. "Much ado about nothing? – A meta-analysis of the relationship between infrastructure and economic growth," Research in Transportation Economics, Elsevier, vol. 63(C), pages 13-26.
    3. Macdonald, Ryan, 2008. "An Examination of Public Capital's Role in Production," Economic Analysis (EA) Research Paper Series 2008050e, Statistics Canada, Analytical Studies Branch.
    4. Elburz, Zeynep & Nijkamp, Peter & Pels, Eric, 2017. "Public infrastructure and regional growth: Lessons from meta-analysis," Journal of Transport Geography, Elsevier, vol. 58(C), pages 1-8.
    5. Sylvie Charlot & Virginie Piguet & Bertrand Schmitt, 2003. "Capital public et productivite quels effets sur les disparites regionales ?," Revue d'économie politique, Dalloz, vol. 113(6), pages 851-880.
    6. Torstein Bye & Alexandra Katz, 1995. "Returns to Publicly Owned Transport Infrastructure Investment . A Cost Function/Cost Share Approach for Norway, 1971-1991," Discussion Papers 154, Statistics Norway, Research Department.
    7. Timilsina,Govinda R. & Hochman,Gal & Song,Ze, 2020. "Infrastructure, Economic Growth, and Poverty : A Review," Policy Research Working Paper Series 9258, The World Bank.
    8. Douglas R. Dalenberg & Mark D. Partridge & Dan S. Rickman, 1998. "Public Infrastructure: Pork or Jobs Creator?," Public Finance Review, , vol. 26(1), pages 24-52, January.
    9. Ward Romp & Jakob De Haan, 2007. "Public Capital and Economic Growth: A Critical Survey," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 8(S1), pages 6-52, April.
    10. Nigel Spence & Antonis Rovolis, 2002. "Duality theory and cost function analysis in a regional context: the impact of public infrastructure capital in the Greek regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 36(1), pages 55-78.
    11. Federici, Andrea, 2018. "Il rapporto tra capitale pubblico e altre variabili macroeconomiche: analisi della letteratura [The relationship between public capital and other macroeconomic variable: a literature review]," MPRA Paper 88515, University Library of Munich, Germany.
    12. David H. Good & M. Ishaq Nadiri & Robin C. Sickles, 1996. "Index Number and Factor Demand Approaches to the Estimation of Productivity," NBER Working Papers 5790, National Bureau of Economic Research, Inc.
    13. Kemmerling, Achim & Stephan, Andreas, 2002. "The Contribution of Local Public Infrastructure to Private Productivity and Its Political Economy: Evidence from a Panel of Large German Cities," Public Choice, Springer, vol. 113(3-4), pages 403-424, December.
    14. Glomm, Gerhard & Ravikumar, B., 1997. "Productive government expenditures and long-run growth," Journal of Economic Dynamics and Control, Elsevier, vol. 21(1), pages 183-204, January.
    15. Silvia Bertarelli, 2006. "Public capital and growth," Politica economica, Società editrice il Mulino, issue 3, pages 361-398.
    16. Pedro R. D. Bom & Jenny Ligthart, 2008. "How Productive is Public Capital? A Meta-Analysis," CESifo Working Paper Series 2206, CESifo.
    17. Pedro R.D. Bom & Jenny E. Ligthart, 2009. "How Productive is Public Capital? A Meta-Regression Analysis," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0912, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    18. Marie-Ange VEGANZONES-VAROUDAKIS, 2000. "Infrastructures, investissement et croissance : un bilan de dix années de recherches," Working Papers 200007, CERDI.
    19. Pereira, Alfredo M. & de Frutos, Rafael Flores, 1999. "Public Capital Accumulation and Private Sector Performance," Journal of Urban Economics, Elsevier, vol. 46(2), pages 300-322, September.
    20. Wei Zou & Fen Zhang & Ziyin Zhuang & Hairong Song, 2008. "Transport Infrastructure, Growth, and Poverty Alleviation: Empirical Analysis of China," Annals of Economics and Finance, Society for AEF, vol. 9(2), pages 345-371, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:inrsre:v:24:y:2001:i:1:p:103-133. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.