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| Vicente German-Soto, Luis Gutierrez Flores and Hector Alonso Barajas Bustillos |
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| ''An analysis of the relationship between infrastructure investment and economic growth in Mexican urban areas, 1985-2008'' |
| ( 2017, Vol. 37 No.4 ) |
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| The relationship between infrastructure investment and economic growth in Mexican urban areas 1985-2008 is analyzed using several panel cointegration tests that control for heterogeneity and serial correlation. Data are found to be stationary in first differences but not levels. The long run cointegrated relationship between certain kinds of infrastructure measures such as water supply, a global infrastructure index, road infrastructure, vehicle density, highways, and a social infrastructure index combined with the finding of no relationship with other measures favors a policy of targeted infrastructure investments by both the private and public sectors. |
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| Keywords: economic growth, infrastructure, panel data, unit roots, cointegration |
JEL: O4 - Economic Growth and Aggregate Productivity: General
C5 - Econometric Modeling: General |
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| Manuscript Received : May 10 2016 | | Manuscript Accepted : Oct 26 2017 |
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