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The Effects of Transportation Networks on Economic Growth

David Canning; Marianne Fay

Title:
The Effects of Transportation Networks on Economic Growth
Author(s):
Canning, David
Fay, Marianne
Date:
Type:
Working papers
Department:
Economics
Permanent URL:
Series:
Department of Economics Discussion Papers
Part Number:
653a
Publisher:
Department of Economics, Columbia University
Publisher Location:
New York
Abstract:
We use panel data to estimate the marginal product of transport infrastructures for 96 countries. Using construction costs, we also calculate rates of return to road building. Our main finding is that transportation infrastructure appears to have "normal" rates of return in developed countries, extraordinarily high rates of return in industrializing countries, and moderate rates of return in underdeveloped countries. Our results also imply that the effect of infrastructure has little short run impact on output but leads to a higher growth rate and higher output in the long run.
Subject(s):
Economics
Item views:
2146
Metadata:
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