Infrastructure’s Role in Sustaining Asia’s Growth

This paper provides a comprehensive overview of the issues, policies, and political economy of infrastructure investment, and a review of empirical literature of the relationship between growth and infrastructure. The paper finds using empirical estimates that while infrastructure does contribute to growth the extent of the contribution varies across income and countries. Telecommunications are most important for low-income countries, while transportation and energy are the most relevant for middle-income and high-income economies, respectively. Results pertaining to the Asia and Pacific region reveal infrastructure on telecommunications, roads, and energy generation to have been supportive of growth in the region.