Determinants of economic growth and the externalities of infrastructure investment, Peruvian case 2000–2022

Alejandro Paredes-Soria ,Hilmer Rubén Jaime-Belleza ,Vicenta Irene Tafur-Anzualdo ,Jorge Miguel Chávez-Díaz

doi:10.24294/jipd9068

Home - JIPD - Volume 8 - Issue 13

Submit to JIPD

Journal Browser

Volume | Year

Issue

• Current lssue

View All

News and Announcements

View All

Determinants of economic growth and the externalities of infrastructure investment, Peruvian case 2000–2022

Alejandro Paredes-Soria

Hilmer Rubén Jaime-Belleza

Vicenta Irene Tafur-Anzualdo

Jorge Miguel Chávez-Díaz

Journal of Infrastructure Policy and Development 2024, 8(13), 9068; https://doi.org/10.24294/jipd9068

Submitted：10 Sept 2024

Accepted：11 Oct 2024

Published：14 Nov 2024

Download PDF(691.55KB)

XML

Abstract

The objective is to determine the impact of economic growth on the externalities of infrastructure investments for the Peruvian case for the periods from 2000 to 2022. The methodologies used are descriptive, explanatory and correlational, analyzing qualitative and mainly quantitative methods. Econometric software was used, and correlations of variables were created for each proposed hypothesis. The estimated model shows that all the independent variables have a significant t-statistic greater than 2 and a probability of less than 5%, which indicates that they are significant and explains the model. The R² is 98.02% which indicates that there is a high level of explanation by the independent variables to the LOG(RGDP). The results of the estimated models demonstrate the existence of a positive and significant relationship of investments in infrastructure and externalities on the growth of the non-deterministic component of real GDP, therefore, in a practical way, private and public investment has a positive effect on the non-deterministic growth of real GDP.

Keywords

References

Alexandro, R., & Basrowi, B. (2024). The influence of macroeconomic infrastructure on supply chain smoothness and national competitiveness and its implications on a country’s economic growth: evidence from BRICS countries. Uncertain Supply Chain Management, 12(1), 167–180. https://doi.org/10.5267/j.uscm.2023.10.007

Aschauer, D. A. (1990). Why Is Infrastructure Important? 21–68. https://www.bostonfed.org/economic/conf/conf34/conf34b.pdf

Barro, R. J., & Sala-i-Martin, Xavier. (1995). Economic growth (2nd ed.). MIT Press.

Butkus, M., Mačiulytė-Šniukienė, A., & Matuzevičiūtė, K. (2023). Transport Infrastructure Investments as a Factor of Economic Growth of European Union Countries. TalTech Journal of European Studies, 13(1), 150–176. https://doi.org/10.2478/bjes-2023-0008

Calderón, C., & Servén, L. (2010). Infrastructure in Latin America (5317). https://ssrn.com/abstract=1615308

Calderón, C., & Servén, L. (2014). Infrastructure, Growth, and Inequality an Overview (7034). https://ssrn.com/abstract=2497234

Cecil Pigou, A. (1920). The Economics of Welfare (4th ed.). Macmillan. http://oll.libertyfund.org/title/1410

Chávez-Díaz, J. M., Bonilla Migo, A., Monterroso Unuysuncco, N. I., & Romero-Carazas, R. (2023). Gestión para la recaudación de impuestos municipales: diagnóstico y propuesta. Revista Venezolana de Gerencia, 28(103), 1052–1067. https://doi.org/10.52080/rvgluz.28.103.9

Coase, R. H. (1960). The problem of social cost. The Journal of Law & Economics, 3, 1–44. https://www.jstor.org/stable/724810

Devarajan, S., Swaroop, V., & Zou, H. (1996). The composition of public expenditure and economic growth. Journal of Monetary Economics, 37(2), 313–344. https://doi.org/10.1016/S0304-3932(96)90039-2

Flores-Sotelo, W. S., Pongo-Águila, O., Rivas-Peña, C. A., & Chávez-Diaz, J. M. (2024). An analysis of fiscal management and macroeconomic stability: An econometric study of public policies in Latin American countries. Journal of Infrastructure, Policy and Development, 8(8), 6547. https://doi.org/10.24294/jipd.v8i8.6547

Fosu, P., & Ankrah Twumasi, M. (2022). Infrastructure and economic growth: Evidence from the United States. Journal of Infrastructure, Policy and Development, 6(1), 1419. https://doi.org/10.24294/jipd.v6i1.1419

González Troncoso, A. M., & Alba Acero, C. A. (2006). Infraestructura vial en Colombia: Un análisis económico como aporte al desarrollo de las regiones 1994 - 2004 [Tesis titulación, Universidad de La Salle, Bogotá]. https://ciencia.lasalle.edu.co/economia/430

Hulten, C. R., Bennathan, E., & Srinivasan, S. (2006). Infrastructure, Externalities, and Economic Development: A Study of the Indian Manufacturing Industry. The World Bank Economic Review, 20(2), 291–308. http://www.jstor.org/stable/40282331

Hurlin, C. (2005). Kamps, C.:The Dynamic Macroeconomic Effects of Public Capital. Theory and Evidence for OECD Countries. Journal of Economics, 86(3), 308–312. https://doi.org/10.1007/s00712-005-0155-5

Ibrahimov, Z., Hajiyeva, S., Seyfullayev, İ., Mehdiyev, U., & Aliyeva, Z. (2023). The impact of infrastructure investments on the country’s economic growth. Problems and Perspectives in Management, 21(2), 415–425. https://doi.org/10.21511/ppm.21(2).2023.39

Jacobs, J. (1969). The Economy of the Cities (Random House, Ed.).

Kapustina, N. V., Sadykov, A. I., & Podhorský, J. (2023). The Role of Infrastructure Investment in Economic Growth and Balanced Regional Development. Finance: Theory and Practice, 27(2), 50–63. https://doi.org/10.26794/2587-5671-2023-27-2-50-63

Machado, R., & Hiroshi, T. (2017). Crecimiento económico e infraestructura de transportes y comunicaciones en el Perú. Economía, 40(79), 9–46. https://doi.org/10.18800/economia.201701.001

Marshall, A. (1890). Principles of economics (8th ed.). Prometheus. http://oll.libertyfund.org/title/1676

Meka’a, C. B., Fotso, S. R., & Guemdjo Kamdem, B. R. (2024). Investments in basic public infrastructure and their effects on economic growth in a developing country: The case of Cameroon. Heliyon, 10(4), e26504. https://doi.org/10.1016/j.heliyon.2024.e26504

Mishra, A., Narendra, K., & Kar, B. (2013). Growth and infrastructure investment in India: Achievements, challenges, and opportunities. Economic Annals, 58(196), 51–70. https://doi.org/10.2298/EKA1396051M

Munnell, A. (1990). Why has productivity growth declined? Productivity and public investment. New England Economic Review. https://ideas.repec.org/a/fip/fedbne/y1990ijanp3-22.html

Onandia Osores, F. J. (2023). Descripción indagatoria del proyecto Mega Puerto de Chancay en el Departamento de Lima Perú. Universitat Politècnica de Catalunya.

Pang, F., & Xie, H. (2024). The environmental externality of economic growth target pressure: evidence from China. China Finance Review International, 14(1), 146–172. https://doi.org/10.1108/CFRI-09-2022-0171

Pedroni, P. (2004). Panel cointegration: Asymptotic and finite sample properties of pooled time series tests with an application to the ppp Hypothesis. Econometric Theory, 20(03). https://doi.org/10.1017/S0266466604203073

Perrotti, D. E., & Sánchez, R. J. (2011). La brecha de infraestructura en América Latina y el Caribe. Cepal.

Prud’homme, R. (2005). Infrastructure and Development. In Bourguignon, François, & Boris Pleskovic (Eds.), Lessons of Experience (pp. 153–181). (Proceedings of the 2004 Annual Bank conference on Development Economics.

Randolph, S., Bogetic, Z., & Heffley, D. R. (1996). Determinants of Public Expenditure on Infrastructure: Transportation and Communication. https://ssrn.com/abstract=620528

Rozas, P. (2010). América Latina: Problemas y desafíos del financiamiento de la infraestructura. Revista de La CEPAL, 2010(101), 59–83. https://doi.org/10.18356/2bf2509a-es

Straub, S. (2008). Infrastructure and Growth in Developing Countries: Recent Advances and Research Challenges. The World Bank. https://doi.org/10.1596/1813-9450-4460

Urrunaga, R., & Aparicio, C. (2012). Infraestructura y crecimiento económico en el Perú. Revista CEPAL, 157–177. https://hdl.handle.net/11362/11553

Ushakov, D., Malishevskaya, N., Mazikova, N., & Rubinskaya, E. (2023). Natural Externalities of Economic Growth Stabilization. In Lecture Notes in Networks and Systems: Vol. 575 LNNS. https://doi.org/10.1007/978-3-031-21219-2_249

Vásquez C., A., & Bendezú Medina, L. (2008). Ensayos sobre el rol de la infraestructura vial en el crecimiento económico del Perú. In Consorcio de Investigación Económica y Social. Consorcio de Investigación Económica y Social. https://cies.org.pe/wp-content/uploads/2016/07/dyp-39.pdf

Previous
article in this issue

Next
article in this issue