How productive is infrastructure? new approach and evidence from rural India
There have been competing arguments about the effect of public infrastructure on productivity in the literature. Level-based regressions generally show a much higher return to public capital than private capital, while difference-based regressions tend to find insignificant or even negative effects....
| Autores principales: | , |
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| Formato: | Artículo preliminar |
| Lenguaje: | Inglés |
| Publicado: |
International Food Policy Research Institute
2001
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/156004 |
| _version_ | 1855528043498438656 |
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| author | Zhang, Xiaobo Fan, Shenggen |
| author_browse | Fan, Shenggen Zhang, Xiaobo |
| author_facet | Zhang, Xiaobo Fan, Shenggen |
| author_sort | Zhang, Xiaobo |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | There have been competing arguments about the effect of public infrastructure on productivity in the literature. Level-based regressions generally show a much higher return to public capital than private capital, while difference-based regressions tend to find insignificant or even negative effects. To help reconcile this debate, this paper proposes that researchers should first test for causality in their data to check for length of lagged relationships and the existence of reverse causality, as a critical step before specifying a final model and estimating procedure on the relationship between the stock of capital and productivity growth. A newly developed system GMM method of estimation is proposed for this purpose. Second, a new method of estimating the relationship between the capital stock and productivity in level form is proposed that controls for possible endogeneity problems arising from reverse causation. These methods are illustrated using a unique set of pooled time-series, cross-section data for India. It is shown that infrastructure development in India is productive with an estimated impact lying between those obtained from level-based and difference-based estimates. |
| format | Artículo preliminar |
| id | CGSpace156004 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2001 |
| publishDateRange | 2001 |
| publishDateSort | 2001 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1560042025-11-06T06:30:38Z How productive is infrastructure? new approach and evidence from rural India Zhang, Xiaobo Fan, Shenggen public administration infrastructure There have been competing arguments about the effect of public infrastructure on productivity in the literature. Level-based regressions generally show a much higher return to public capital than private capital, while difference-based regressions tend to find insignificant or even negative effects. To help reconcile this debate, this paper proposes that researchers should first test for causality in their data to check for length of lagged relationships and the existence of reverse causality, as a critical step before specifying a final model and estimating procedure on the relationship between the stock of capital and productivity growth. A newly developed system GMM method of estimation is proposed for this purpose. Second, a new method of estimating the relationship between the capital stock and productivity in level form is proposed that controls for possible endogeneity problems arising from reverse causation. These methods are illustrated using a unique set of pooled time-series, cross-section data for India. It is shown that infrastructure development in India is productive with an estimated impact lying between those obtained from level-based and difference-based estimates. 2001 2024-10-24T12:42:59Z 2024-10-24T12:42:59Z Working Paper https://hdl.handle.net/10568/156004 en Open Access application/pdf International Food Policy Research Institute Zhang, Xiaobo; Fan, Shenggen. 2001. How productive is infrastructure? new approach and evidence from rural India. EPTD Discussion Paper 84. https://hdl.handle.net/10568/156004 |
| spellingShingle | public administration infrastructure Zhang, Xiaobo Fan, Shenggen How productive is infrastructure? new approach and evidence from rural India |
| title | How productive is infrastructure? new approach and evidence from rural India |
| title_full | How productive is infrastructure? new approach and evidence from rural India |
| title_fullStr | How productive is infrastructure? new approach and evidence from rural India |
| title_full_unstemmed | How productive is infrastructure? new approach and evidence from rural India |
| title_short | How productive is infrastructure? new approach and evidence from rural India |
| title_sort | how productive is infrastructure new approach and evidence from rural india |
| topic | public administration infrastructure |
| url | https://hdl.handle.net/10568/156004 |
| work_keys_str_mv | AT zhangxiaobo howproductiveisinfrastructurenewapproachandevidencefromruralindia AT fanshenggen howproductiveisinfrastructurenewapproachandevidencefromruralindia |