Agénor, Pierre-RichardMoreno-Dodson, Blanca2012-06-222012-06-222006-11https://hdl.handle.net/10986/8880This paper provides an overview of the various channels through which public infrastructure may affect growth. In addition to the conventional productivity, complementarity, and crowding-out effects typically emphasized in the literature, the impact of infrastructure on investment adjustment costs, the durability of private capital, and the production of health and education services are also highlighted. Effects on health and education are well documented in a number of microeconomic studies, but macroeconomists have only recently begun to study their implications for growth. Links between health, infrastructure, and growth are illustrated in an endogenous growth model with transitional dynamics, and the optimal allocation of public expenditure is discussed. The concluding section draws implications of the analysis for the design of strategies aimed at promoting growth and reducing poverty.en-USCC BY 3.0 IGOACCELERATORACCELERATOR EFFECTACCESS TO INFORMATIONACCESSIBILITYADVERSE EFFECTAGGREGATE DEMANDAIRAIR POLLUTIONBASIC INFRASTRUCTURECAPITAL MARKETSCLINICSCONGESTIONCONGESTION COSTSCONGESTION ON HIGHWAYSCONSTANT RETURNS TO SCALECOST FUNCTIONSCOST OF CAPITALDEATH RATEDEBTDEFICITSDEPRECIATIONDEVELOPMENT ECONOMICSDIMINISHING RETURNSDOMESTIC CONSUMPTIONECONOMIC GROWTHELASTICITYELASTICITY OF SUBSTITUTIONELECTRICITYEMPLOYMENTEVASIONEXPANSIONEXPORTSEXTERNALITIESFAMILIESFIRMSFOREIGN MARKETSFORMAL ANALYSISFREIGHTFUELSGDPGOVERNMENT DEBTGOVERNMENT SPENDINGGROWTH RATEHEALTH CAREHEALTH INDICATORSHEALTH INTERVENTIONSHEALTH OUTCOMESHEALTH SERVICESHIGHWAYHOSPITALSHUMAN CAPITALHYGIENEINCOMEINFLATIONINFRASTRUCTURE INVESTMENTINTEREST RATEINTEREST RATESLIFE EXPECTANCYMACROECONOMICSMARGINAL COSTMARGINAL PRODUCTMARGINAL PRODUCTIVITYMORBIDITYMORTALITYNUTRITIONNUTRITIONAL STATUSOPEN ECONOMYPOLIOPOLITICAL ECONOMYPRICE EFFECTPRIMARY HEALTH CAREPRIVATE CAPITALPRIVATE INVESTMENTPRIVATE INVESTORSPRIVATE SECTORPRODUCTION COSTSPRODUCTION FUNCTIONPRODUCTION INPUTSPRODUCTIVITYPROPERTY RIGHTSPUBLICPUBLIC BORROWINGPUBLIC DEBTPUBLIC EXPENDITUREPUBLIC INFRASTRUCTUREPUBLIC INVESTMENTPUBLIC INVESTMENT IN INFRASTRUCTUREPUBLIC ROADSPUBLIC SECTORPUBLIC SPENDINGPUBLIC TRANSPORTATIONPUBLIC WORKSPUBLIC-PRIVATE PARTNERSHIPSRAILROADRAILWAYSRISK PREMIUMROADROAD CONDITIONSROAD INFRASTRUCTUREROAD MAINTENANCEROAD NETWORKROADSRURAL ROADSSANITATIONSANITATION FACILITIESSCALE EFFECTSCHOOL HEALTHSIBLINGSSMALL FIRMSSUB-SAHARAN AFRICASUBSTITUTION EFFECTSUPPLY CURVETAXTAX RATESTAX REVENUESTAXATIONTELECOMMUNICATIONSTOLLTOTAL FACTOR PRODUCTIVITYTOTAL FACTOR PRODUCTIVITY GROWTHTRAFFICTRANSPORTTRANSPORT COSTSTRANSPORT FACILITIESTRANSPORTATIONTRANSPORTATION NETWORKSTRANSPORTATION SERVICESTRANSPORTATION SUBSIDIESTRANSPORTATION SYSTEMTRUCKSVACCINATIONVEHICLEVEHICLE OPERATINGVEHICLE OPERATING COSTSWAGESWATER SUPPLYWATER SYSTEMSWEALTHWORKERSWorld Bank10.1596/1813-9450-4064