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Machine Learning for Streaming Data: Overview, Applications and Challenges Read chapter Read first chapter

2021 | OriginalPaper | Chapter

The Effect of Infrastructure and Taxation on Economic Growth: Insights from Middle-Income Countries

Author : Rudra P. Pradhan

Published in: Applied Advanced Analytics

Publisher: Springer Singapore

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Abstract

We study the interactions between infrastructure and taxation on per capita economic growth in middle-income countries over 1960–2017. The dynamic panel data model is positioned to estimate this interface at three levels, (1) for upper middle-income countries (UMICs), (2) for lower middle-income countries (LMICs), and (3) for total middle-income countries (MICs), combined UMICs and LMICs. Each level has six different cases, depending upon the use of six infrastructure indicators. The findings show that the effect of infrastructure on per capita economic growth is positive and significant across the three subsets and in all six cases. On the contrary, the effect of taxation on economic growth is negative and the impact varies from UMICs to LMICs.

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Appendix
Available only for authorised users
Footnotes
1
It includes both ICT infrastructure and transportation infrastructure. ICT infrastructure includes the use of telephone land lines (TLL), mobile phones (MOB), Internet users (INU), Internet servers (INS), fixed broadband (FIB), and a composite index (ICI), while transportation infrastructure includes the use of road length, and railways length. Principal component analysis (PCA) is deployed to derive the ICI from the other five ICT infrastructure indicators. Detailed derivation is available from the authors upon request.
 
2
It is used as tax revenue as a percentage of gross domestic product.
 
Literature
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Pradhan, R. P., Arvin, M. B., Nair, M., Bennett, S. E., & Bahmani, S. (2020). Some determinants and mechanics of economic growth in middle-income countries: The role of ICT infrastructure development, taxation and other macroeconomic variables. Singapore Economic Review (forthcoming).
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Metadata
Title
The Effect of Infrastructure and Taxation on Economic Growth: Insights from Middle-Income Countries
Author
Rudra P. Pradhan
Copyright Year
2021
Publisher
Springer Singapore
Book
Applied Advanced Analytics

Print ISBN: 978-981-336-655-8

Electronic ISBN: 978-981-336-656-5

Copyright Year: 2021

DOI
https://doi.org/10.1007/978-981-33-6656-5_16