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http://dx.doi.org/10.13106/jafeb.2021.vol8.no12.0085

Assessment and Implications of Maximizing the Capacities in Social and Physical Infrastructure in Middle-Income Asian countries  

YASMIN, Fouzia (Department of Economics, University of Sahiwal)
SAFDAR, Noreen (Department of Economics, The Women University Multan)
KHATOON, Sabila (Department of Economics, Karakoram International University)
ALI, Fatima (Department of History and Pakistan Studies, The Women University Multan)
Publication Information
The Journal of Asian Finance, Economics and Business / v.8, no.12, 2021 , pp. 85-94 More about this Journal
Abstract
Infrastructure capacities are essential elements and one of the sustainable lines to drive economic growth. Infrastructure development, both physical and social, is vital to sector-wise economic development. However, there is limited evidence of how infrastructure development in certain sectors benefits the economy as a whole. This study explains the relationships between infrastructure and economic growth in selected middle-income Asian countries, highlighting the essential criteria to benefit from both physical and social infrastructure, as well as sectoral (agriculture, industry, and services) economic output. The research uses the data from 1990 to 2020 for empirical estimations. The study used Levin, Lin, & Chu test, ADF- Fischer chi- Square, and PP- Fischer Chi-Square to test unit root and to observe the stationary nature of the panel. Padroni and Kao cointegration is applied to check the cointegration among different panes. A Fully Modified OLS was employed for checking the association between physical and social infrastructure and economic growth. Results show that physical and social infrastructure negatively impact sectoral output in Asia's middle-income countries. Apart from infrastructure the per capita GDP growth, tax to GDP ratio, and population growth shows a simultaneous relation between infrastructure and sectoral economic growth.
Keywords
Physical Infrastructure; Social Infrastructure; Sectoral Output; Middle-income Countries;
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