The Relationship between Infrastructure Investment and Economic Growth

The principal motivation in this study is to investigate the relationship between economic growth and different types of infrastructure investment for selected samples among developing countries and emerging countries. Gross domestic product (GDP) is generally considered as the most important index and comprehensive measure of the size of economy. The intended model of economic growth to be investigated, includes an explanatory variables such as Energy use (kg of oil per capita), share of gross capital formation in GDP, share of gross saving in GDP, Inflation, GDP deflator (annual %), share of trade in GDP, investment in energy with private participation (% of GCF), investment in transport with private participation (% of GCF) and investment in telecoms with private participation (% of GCF). The employed method for the analysis is panel regression with fixed effect model. The data collected from thirteen emerging countries include Argentina, Brazil, Chile, China, Colombia, India, Indonesia, Malaysia, Mexico, Peru, Philippines, Russian Republic and Turkey between 2000 until 2010. Finally, through analyzing the E-VIEWS results, the variables with positive or negative effects on GDP growth (annual %) and also the significant and insignificant effects of the variables will be clarified accordingly. Keywords: Growth Rate of GDP, Infrastructure Investment, Growth Capital Formation, Inflation Rate, Trade