An econometric analysis on the relationship between infrastructure and economic growth

In this study, the effect of infrastructure on economic growth for the years 2011-2020, considering the upper middle-income countries, was investigated within the framework of the endogenous growth model based on Barro (1990). In the analysis, dynamic panel data analysis was carried out by considering transportation, telecommunications, and energy infrastructure types. Analyzes were carried out by using the system GMM estimator, which is one of the dynamic panel data methods, by setting up different models for each of the relevant infrastructure types. Dynamic panel data analysis could not be performed due to the insufficient number of observations regarding the transportation infrastructure type. As a results of study, it has been revealed that telecommunication and energy infrastructure are effective on economic growth.