Open AccessInfrastructure and Growth
Author(s) -
Muhammad Imran,
Javeria Niazi
Publication year - 2011
Publication title -
pakistan development review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.154
H-Index - 26
ISSN - 0030-9729
DOI - 10.30541/v50i4iipp.355-364
Subject(s) - economics , investment (military) , economic shortage , pace , productivity , stock (firearms) , agriculture , electricity , agricultural productivity , natural resource economics , agricultural economics , macroeconomics , geography , government (linguistics) , linguistics , philosophy , electrical engineering , geodesy , archaeology , engineering , politics , political science , law
Physical Infrastructure stocks in Pakistan since the last twodecades have been growing at a very low pace which resulted inincreasing unemployment and very low economic growth in the last fouryears. The paper analyses the link between infrastructure, productivityand growth in Pakistan by applying two distinct methodologies—growthaccounting and growth regressions. We find out that infrastructure stockhas significantly positive impact on productivity and economic growth.At the individual level, electricity generation, agricultural wateravailability and telecommunications impact the economic growthpositively and significantly, while, roads development have no impact.This is an indication of over investment in roads, especially highways.Based on model findings, we recommended that Pakistan will have toincrease the allocation of PSDP to above 1.5 percent of the GDP if theproblem of shortage of electricity is to be addressed on a prioritybasis so as to raise the growth rate of the economy.