Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE credits
This thesis shows that the relationship between economic growth and expansions of telephone
main lines and electricity generating capacity is two-way, when looking at the period of 1955 -
1995 and half of the world's countries. In other words, expansions of these two kinds of
infrastructure seem to both initiate and be induced by economic growth, highlighting the
problem of much previous research that does not account for a bi-directional relationship.
Furthermore, this research suggests that the effect that these two kinds of infrastructure have on
economic growth was during this period great enough to be of policy interest, and it is likely that
it can explain part of the vast differences seen between countries in GDP per capita today. While
the impact that these two kinds of infrastructure had during this specific time will surely not be
the same in the future, the results still point to a potentially important role for infrastructure
expansions in determining economic growth, even though
the kinds of infrastructure that have
most impact will vary with time and technological progress.