Policy Watch: Infrastructure Investment and Economic Growth

INVESTMENT and ECONOMIC GROWTH

We used unit root and cointegration techniques to determine the long run relationship between GDP and investment for 90 countries using data from World Bank for the period 1960-1992. In the first step of our analysis we found GDP and investment integrated of different orders for 33 countries. Second step of our analysis shows no cointegration between GDP and investment for 25 countries and coin...

Does infrastructure investment lead to economic growth or economic fragility? Evidence from China

China’s three-decade infrastructure investment boom shows few signs of abating. Is China’s economic growth a consequence of its purposeful investment? Is China a prodigy in delivering infrastructure from which rich democracies could learn? The prevalent view in economics literature and policies derived from it is that a high level of infrastructure investment is a precursor to economic growth. ...

Economic policy uncertainty and firm-level investment

This paper examines the effect of economic policy uncertainty and its components on firm-level investment. It is found that economic policy uncertainty in interaction with firm-level uncertainty depresses firms’ investment decisions. When firms are in doubt about costs of doing business due to possible changes in regulation, cost of health care and taxes, they become more guarded with investmen...

Infrastructure and Canadian Economic Growth

“Canada is a wealthy country, rich in both human and capital resources. The incomes earned by its people today are among the highest in the world. The current high standing is a legacy from previous generations. Over the decades, huge investments have been made in infrastructure. Communications and transportation systems are, for the most part, vast, modern and efficient, joining together far-f...

Transportation infrastructure investment and economic growth at the MSA level; accounting for spillover effects