Impact of Infrastructure Investment on Developed and Developing Economies

Asian Infrastructure Investment Bank  
Policy Initiative: Sustainable Infrastructure
28. June 2020

This paper uses two longitudinal datasets—one with more limited coverage from the Organisation for Economic Co-operation and Development and another constructed using general government gross fixed capital formation—to test for the relative effects of infrastructure versus non-infrastructure investment on output per worker, between developed and developing economies. The paper presents evidence that increasing infrastructure per worker has a larger relative impact on developing economies. This also implies that the share of gross capital formation devoted to infrastructure should be higher in developing economies.

Asian Infrastructure Investment Bank | Impact of Infrastructure Investment on Developed and Developing Economies

EPF | Economic Policy Forum

EPF | Economic Policy Forum