Template-type: ReDif-Paper 1.0
Author-Name: Candelon Bertrand 
Author-Name: Colletaz Gilbert 
Author-Name: Hurlin Christophe 
Author-workplace-name: METEOR
Title: Network Effects and Infrastructure Productivity in Developing Countries 
Abstract: This paper proposes to investigate the threshold effects of the productivity of infrastructure investment in developing countries within a panel data framework. Various speci.cations of an augmented production function that allow for endogenous thresholds are considered. The overwhelming outcome is the presence of strong threshold effects in the relationship between output and private and public inputs. Whatever the transition mechanism used, the testing procedures lead to strong rejection of the linearity of this relationship. In particular, the productivity of infrastructure investment generally exhibits some network effects. When the available stock of infrastructure is very low, investment in this sector has the same productivity as non-infrastructure investment. On the contrary, when a minimumnetwork is available, the marginal productivity of infrastructure investment is generally largely greater than the productivity of other investments. Finally, when the main network is achieved, its marginal productivity becomes similar to the productivity of other investment.
Keywords: financial economics and financial management ; 
Series: Research Memoranda
Creation-Date: 2009
Number: 050
File-URL: http://arnop.unimaas.nl/show.cgi?fid=16788
File-Format: application/pdf
File-Size: 439473
Handle: RePEc:unm:umamet:2009050