How much an economy should invest in its physical infrastructure is a crucial question being asked by policy makers from developing countries where financial resources for economic development are limited. This paper aims to address this question by bringing insights from the literature that...

To analyze the effect of an increase in the quantity or quality of public investment on growth, this paper extends the World Bank's Long-Term Growth Model (LTGM), by separating the total capital stock into public and private portions, with the former adjusted for its quality. The paper presents...