How Productive Is Infrastructure? A New Approach and Evidence from Rural India
用GMM方法检验印度面板数据，发现基础设施发展具有生产力，为扭转农村基础设施投资下降趋势提供了支持证据。
There have been competing arguments about the effect of public infrastructure on productivity. Level‐based and debate‐based regressions often lead to different estimates. To help reconcile this difference, this article applies the GMM method to first test for causality to check for length of lagged relationships and the existence of reverse causality before specifying a final model and deciding the estimation procedure. This approach is illustrated using a panel data set for India. The results show that infrastructure development in India is productive, providing supporting evidence to reverse the trend of declining investment in rural infrastructure.