Calderon, CesarServen, Luis2014-10-062014-10-062014-09https://hdl.handle.net/10986/20365Academics and policy makers have long considered an adequate supply of infrastructure services to be essential for economic development. This paper reviews recent theoretical and empirical literature on the effects of infrastructure development on growth and income distribution. The theoretical literature has employed a variety of analytical settings regarding the drivers of income growth, the degree to which infrastructure represents a public or a private good, and the extent of market distortions, notably in capital markets. In turn, the empirical literature has used various econometric methodologies on time-series and cross-section macro and microeconomic data to test for the effects of infrastructure development. However, these empirical tests face challenging issues of measurement, identification, and heterogeneity. Overall, the literature finds positive effects of infrastructure development on income growth and, more tentatively, on distributive equity. Still, the precise mechanisms through which these effects accrue, and their full impact on welfare, remain relatively unexplored.en-USCC BY 3.0 IGOACCESS REGULATIONACCOUNTINGAFFORDABILITY OF INFRASTRUCTURE SERVICESAGRICULTUREASSETSCAPITAL ACCUMULATIONCAPITAL EXPENDITURECAPITAL MARKETSCAPITAL STOCKCOMPARATIVE ADVANTAGECONGESTIONCONSUMERSCOST OF CAPITALDEFICITSDEVELOPMENT ECONOMICSDEVELOPMENT POLICYDISTRIBUTION OF INCOMEDRIVERSDYNAMIC ANALYSISECONOMETRICSECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC LIFEECONOMIC REFORMECONOMIC SURVEYSEIBELASTICITIESELASTICITYELASTICITY OF SUBSTITUTIONELECTRICITYEMERGING MARKETSEMPLOYMENTENERGY EFFICIENCYEXOGENOUS FACTORSEXTERNALITIESFINANCIAL INSTITUTIONSFINANCING OF INFRASTRUCTUREFISCAL POLICYFIXED INPUTSFUELGDPGOVERNMENT INVESTMENTGOVERNMENT SPENDINGGROWTH MODELGROWTH POLICIESGROWTH RATEHIGHWAYHIGHWAYSHUMAN CAPITALINCOME DISTRIBUTIONINCOME GROUPSINCOME LEVELSINEQUALITY MEASURESINFRASTRUCTURE ASSETSINFRASTRUCTURE CONGESTIONINFRASTRUCTURE DEVELOPMENTINFRASTRUCTURE FINANCINGINFRASTRUCTURE INVESTMENTINFRASTRUCTURE POLICIESINFRASTRUCTURE PROVISIONINFRASTRUCTURE REFORMINFRASTRUCTURE REHABILITATIONINFRASTRUCTURE SECTORINFRASTRUCTURE SERVICESINFRASTRUCTURE SPENDINGINFRASTRUCTURE SUPPLYINSURANCEINVENTORYLEVIESLIVING STANDARDSMACROECONOMICSMARGINAL COSTSMARGINAL PRODUCTIVITYMARKET DISTORTIONSMETROPOLITAN AREASMOBILITYOPEN ACCESSPENALTIESPER CAPITA INCOMEPOLITICAL ECONOMYPOOR HOUSEHOLDSPOSITIVE EFFECTSPOWERPOWER SECTORPRIVATE CAPITALPRIVATE PROVIDERSPRIVATE SECTORPRIVATE SECTOR PARTICIPATIONPRIVATIZATIONPRODUCTION COSTSPRODUCTION FUNCTIONPRODUCTION INPUTSPRODUCTIVITYPRODUCTIVITY GROWTHPROFIT FUNCTIONSPROVISION OF INFRASTRUCTUREPUBLICPUBLIC ECONOMICSPUBLIC ENTERPRISESPUBLIC EXPENDITUREPUBLIC FINANCEPUBLIC GOODPUBLIC GOODSPUBLIC INFRASTRUCTUREPUBLIC INVESTMENTPUBLIC INVESTMENT IN EDUCATIONPUBLIC PROCUREMENTPUBLIC REVENUESPUBLIC SECTORPUBLIC SERVICESPUBLIC SPENDINGPUBLIC WORKSRAILWAYSREAL GDPREAL INTEREST RATEREGIONAL INFRASTRUCTUREREGRESSION ANALYSISRETURN ON INVESTMENTROADROAD BUILDINGROAD IMPROVEMENTROAD NETWORKROAD QUALITYROAD TRANSPORTROADSROUTESRURAL INFRASTRUCTURERURAL ROADSSANITATIONTAXTAXATIONTELECOMMUNICATIONSTELECOMMUNICATIONS REFORMTELECOMMUNICATIONS SERVICESTELEPHONE NETWORKSTOLLTOLL ROADSTRANSPORTTRANSPORT INFRASTRUCTURETRANSPORT SERVICESTRANSPORTATIONTRANSPORTATION SYSTEMSURBAN ECONOMICSUTILITIESUTILITY PRIVATIZATIONUTILITY SERVICESVARIABLE INPUTSWAGESWATER SERVICESWEALTHhttps://doi.org/10.1596/1813-9450-7034