Infrastructure and Growth in South Africa: Direct and Indirect Productivity Impacts of 19 Infrastructure Measures

J. W. Fedderke, Ž Bogetić

Research output: Contribution to journalArticle

40 Scopus citations

Abstract

Empirical explorations of the growth and aggregate productivity impacts of infrastructure have been characterized by ambiguous (countervailing signs) results with little robustness. This paper, utilizing panel data for South African manufacturing over the 1970-2000 period, and a range of 19 infrastructure measures, explores the question of infrastructure endogeneity in output equations. The paper develops an instrumentation strategy generalizable to other contexts. Controlling for the possibility of endogeneity in the infrastructure measures renders the impact of infrastructure capital not only positive, but of economically meaningful magnitudes.

Original languageEnglish (US)
Pages (from-to)1522-1539
Number of pages18
JournalWorld Development
Volume37
Issue number9
DOIs
StatePublished - Sep 2009

All Science Journal Classification (ASJC) codes

  • Geography, Planning and Development
  • Development
  • Sociology and Political Science
  • Economics and Econometrics

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