There does not seem to be a consensus on the importance of infrastructure investments in
the process of economic development. With persistent regional disparities, and
increasing regional identities, there is a need to determine the drivers of regional growth.
Contribution of infrastructure to regional productivity growth is analyzed in this paper.
Empirical analysis using data from 25 states in India for the past two decades suggests
that composition of infrastructure investment is important in facilitating economic
growth. Empirical results also highlight that investments in economic infrastructure have
the closest linkage with regional productivity growth.
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