Development of the model to examine the impact of infrastructure on economic growth and convergence
Core infrastructure, which covers transportation, information and communication (ICT), energy, water and sanitation systems, plays a significant role in economic growth. The development of core infrastructure – one of the European Union (EU) Cohesion Policy (CP) priorities – is heavily funded. Howe...
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| Format: | Article |
| Language: | English |
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Vilnius Gediminas Technical University
2022-06-01
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| Series: | Journal of Business Economics and Management |
| Subjects: | |
| Online Access: | https://mma.vgtu.lt/index.php/JBEM/article/view/17140 |
| _version_ | 1818248964305059840 |
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| author | Alma Mačiulytė-Šniukienė Mindaugas Butkus Vida Davidavičienė |
| author_facet | Alma Mačiulytė-Šniukienė Mindaugas Butkus Vida Davidavičienė |
| author_sort | Alma Mačiulytė-Šniukienė |
| collection | DOAJ |
| description |
Core infrastructure, which covers transportation, information and communication (ICT), energy, water and sanitation systems, plays a significant role in economic growth. The development of core infrastructure – one of the European Union (EU) Cohesion Policy (CP) priorities – is heavily funded. However, it remains unclear whether these investments achieve the main aim, i.e. contribute to economic growth and convergence between EU countries and especially regions. A theoretical model addressing the identified issues is needed to assess the impact of infrastructure on economic growth and convergence comprehensively and as accurately as possible. To reach this aim, first, we have disclosed the definition of infrastructure and its structure. Also, we discussed different approaches to the relationship between infrastructure and economic growth. We developed a theoretical model for evaluating infrastructure impact on economic growth and convergence. Moreover, based on the neoclassical approach, we specified an econometric model that includes indicators of different types of infrastructure and assessed growth and convergence outcomes of infrastructure development. Even though we find that infrastructure positively affects growth and convergence, the estimated impact is not statistically significant except for some types of ICT and transport infrastructure.
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| first_indexed | 2024-12-12T15:28:58Z |
| format | Article |
| id | doaj.art-6d23978c6b9043b4ac48047c5aa0d34c |
| institution | Directory Open Access Journal |
| issn | 1611-1699 2029-4433 |
| language | English |
| last_indexed | 2024-12-12T15:28:58Z |
| publishDate | 2022-06-01 |
| publisher | Vilnius Gediminas Technical University |
| record_format | Article |
| series | Journal of Business Economics and Management |
| spelling | doaj.art-6d23978c6b9043b4ac48047c5aa0d34c2022-12-22T00:20:08ZengVilnius Gediminas Technical UniversityJournal of Business Economics and Management1611-16992029-44332022-06-0123310.3846/jbem.2022.17140Development of the model to examine the impact of infrastructure on economic growth and convergenceAlma Mačiulytė-Šniukienė0Mindaugas Butkus1Vida Davidavičienė2Department of Business Technology and Entrepreneurship, Faculty of Business Management, Vilnius Gediminas Technical University, Vilnius, LithuaniaInstitute of Regional Development, Šiauliai Academy, Vilnius University, Šiauliai, LithuaniaDepartment of Business Technology and Entrepreneurship, Faculty of Business Management, Vilnius Gediminas Technical University, Vilnius, Lithuania Core infrastructure, which covers transportation, information and communication (ICT), energy, water and sanitation systems, plays a significant role in economic growth. The development of core infrastructure – one of the European Union (EU) Cohesion Policy (CP) priorities – is heavily funded. However, it remains unclear whether these investments achieve the main aim, i.e. contribute to economic growth and convergence between EU countries and especially regions. A theoretical model addressing the identified issues is needed to assess the impact of infrastructure on economic growth and convergence comprehensively and as accurately as possible. To reach this aim, first, we have disclosed the definition of infrastructure and its structure. Also, we discussed different approaches to the relationship between infrastructure and economic growth. We developed a theoretical model for evaluating infrastructure impact on economic growth and convergence. Moreover, based on the neoclassical approach, we specified an econometric model that includes indicators of different types of infrastructure and assessed growth and convergence outcomes of infrastructure development. Even though we find that infrastructure positively affects growth and convergence, the estimated impact is not statistically significant except for some types of ICT and transport infrastructure. https://mma.vgtu.lt/index.php/JBEM/article/view/17140infrastructuretransport infrastructureenergy infrastructuretelecommunication infrastructurewater and sanitation infrastructureeconomic growth |
| spellingShingle | Alma Mačiulytė-Šniukienė Mindaugas Butkus Vida Davidavičienė Development of the model to examine the impact of infrastructure on economic growth and convergence Journal of Business Economics and Management infrastructure transport infrastructure energy infrastructure telecommunication infrastructure water and sanitation infrastructure economic growth |
| title | Development of the model to examine the impact of infrastructure on economic growth and convergence |
| title_full | Development of the model to examine the impact of infrastructure on economic growth and convergence |
| title_fullStr | Development of the model to examine the impact of infrastructure on economic growth and convergence |
| title_full_unstemmed | Development of the model to examine the impact of infrastructure on economic growth and convergence |
| title_short | Development of the model to examine the impact of infrastructure on economic growth and convergence |
| title_sort | development of the model to examine the impact of infrastructure on economic growth and convergence |
| topic | infrastructure transport infrastructure energy infrastructure telecommunication infrastructure water and sanitation infrastructure economic growth |
| url | https://mma.vgtu.lt/index.php/JBEM/article/view/17140 |
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