Infrastructure Investment, Institution and Economic Growth: Cross Country Study using Alternative Measures of Institution
Preethinee Jayanthi Atapattu

This paper examines the impact of infrastructure on economic growth. Since infrastructure investment differs from other forms of investment due to its unique features, it always subjected to institutional involvement. Infrastructure is seen as a factor of production and telephone per capita and electricity power generation capacity are used as infrastructure variables. Corruption Index, Democratic Accountability Index and Political Risk Rating Index are used to capture the quality of the institution. Results finds that electricity generation has a positive contribution to South Asia and all the sample countries while electricity power generation and telecommunication are both jointly significant in Next 11 countries. The paper recommends more investments on infrastructure as infrastructure finds as a boosting factor for growth in sample countries. Apart from infrastructure development, labor is another promising factor for the economic growth. Policies should design to absorb labor into labor force and to generate healthy and literate labor force to cater future market demand.

Full Text: PDF     DOI: 10.15640/jeds.v4n3a2