# Table of Contents

|I.|Introduction............................................................................................................3|
|---|---|
|II.|Theory....................................................................................................................6|
|1.|Growth Theory.......................................................................................................6|
||Direct Channels......................................................................................................7|
||Indirect Channels ...................................................................................................7|
|2.|Economic Geography...........................................................................................9|
||New Economic Geography and Public Policy.....................................................10|
||Urban Economics and the Role of Cities.............................................................15|
|3.|Main Lessons from Theory...............................................................................16|
||Linkages between Infrastructure and Growth......................................................16|
||Composition, Sequencing and Efficiency of Alternative investments ................16|
|III.|Empirics...........................................................................................................18|
|1.|<br>General Literature Review...............................................................................18|
|2.|<br>Macro-Level Empirical Studies.......................................................................22|
||Issues and Conclusions ........................................................................................22|
||Main Methodological Issues................................................................................24|
||Policy Implications ..............................................................................................25|
|3.|<br>Empirical Economic Geographic Studies........................................................26|
||Generic Evidence.................................................................................................26|
||Empirical Evidence in a Spatial Framework .......................................................29|
|4.|<br>Microeconometric Studies ...............................................................................31|
|5.|<br>Main Lessons from Empirical Studies.............................................................33|
||Linkages Between Infrastructure and Growth.....................................................33|
||Composition, Sequencing and Efficiency of Alternative Investments ................33|
|IV.|Directions for Future Research........................................................................35|
|1.|<br>Main Challenges and Key Working Objectives...............................................35|
||1.a.<br>Macroeconomic Literature.......................................................................35|
||1.b.<br>Microeconometric Literature ...................................................................37|
||1.c.<br>Economic Geography...............................................................................38|
|2.|<br>Data Development ...........................................................................................39|
|V.|Conclusion ...........................................................................................................40|
|Refe|rences....................................................................................................................42|

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