Impact of the public expenses’ infrastructures on the economic growth of developing countries

Dr. Emile AIFA

Volume : VI, Issue : VI, June - 2016

Impact of the public expenses’ infrastructures on the economic growth of developing countries

Dr. Emile Aifa

Abstract :

 The model put forward by Barro for the theoretical analysis of the links between public capital and growth is now providing a reference framework for the economic literature. The originality of this model lies in the fact that it shows the public capital stock in the production function, so as to highlight the externalities that justify the importance of state intervention in the productive activity. Indeed, if this model was able to provide compelling results in the case of developed economies, the empirical evidence seems controversial in the developing countries. This lack of robustness would probably derive from certain characteristics in developing countries, including, among others, lack of quality data, weak economic governance, fiscal policy, low spatial diffusion...