Estimates of construction infrastructure stock for Cape Verde: 1980–2019
Abstract
Building and other construction assets constitute a significant part of a country’s physical and economic infrastructure. According to several writers, the knowledge of reliable data of building and other construction assets of a specific country or region is a crucial element for the long-term management of these assets. Built capital stock statistics at the national or international levels have been available for most countries of the world, both developed and less developed ones, for some time, but construction infrastructure stock statistics at the disaggregated level are very scarce, even for most developed countries. Furthermore, the methodologies to produce the estimates of built capital stock, at the international level, do not consider countries’ specificities. This paper discusses the methodologic issues for producing construction infrastructure stock statistics for Cape Verde, and makes estimates for the period 1980–2019. The paper outlines the Perpetual Inventory Method (PIM) used to produce capital estimation, data employed, and the assumptions made to estimate missing data. The paper analyses the level of the construction infrastructure stock estimates for Cape Verde, as well as their impact on the development pattern of the country’s construction industry, and suggests how further studies can enhance our comprehension of the relationship between construction investment and economic growth and development.
Keyword : built capital stock, construction infrastructure stock, construction sector, construction investment, estimation, Perpetual inventory method
How to Cite
Lopes, J., & Tavares, A. (2024). Estimates of construction infrastructure stock for Cape Verde: 1980–2019. Journal of Civil Engineering and Management, 30(4), 295–306. https://doi.org/10.3846/jcem.2024.20956
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Stern, N. (1991). The determinants of growth. The Economic Journal, 101, 122–133. https://doi.org/10.2307/2233847
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Aghion, P., & Howitt, P. (1999). Endogenous growth theory. MIT Press.
Ansar, A., Flyvbjerg, B., Budzier, A., & Lunn, D. (2016). Does infrastructure investment lead to economic growth or economic fragility? Evidence from China. Oxford Review of Economic Policy, 32(3), 360–390. https://doi.org/10.1093/oxrep/grw022
Aschauer, D. A. (1989). Is public expenditure productive?. Journal of Monetary Economics, 23(2), 177–200. https://doi.org/10.1016/0304-3932(89)90047-0
Banerjee, A., Duflo, E., & Qian, N. (2020). On the road: access to transportation infrastructure and economic growth in China. Journal of Development Economics, 145, Article 102442. https://doi.org/10.1016/j.jdeveco.2020.102442
Berlemann, M., & Wesselhöft, J. (2014). Estimates of aggregate capital stock using the Perpetual inventory method. Review of Economics, 65(1), 1–34. https://doi.org/10.1515/roe-2014-0102
Calderón, C., Moral-Benito, E., & Servén, L. 2015. Is infrastructure capital productive? A dynamic heterogeneous approach. Journal of Applied Econometrics, 30(2), 177–198. https://doi.org/10.1002/jae.2373
Cape Verde’s Ministry of Infrastructure, Territorial Planning and Housing. (n.d.). Database.
Caselli, F., & Feyrer, J. (2007). The marginal product of capital. The Quarterly Journal of Economics, 122(2), 535–568. https://doi.org/10.1162/qjec.122.2.535
de Long, J., & Summers, L. (1991). Equipment investment and economic growth. Quarterly Journal of Economics, 106, 445–502. https://doi.org/10.2307/2937944
Derbyshire, J., Gardiner, B., & Waights, S. (2013). Estimating the capital stock for the NUTS 2 regions of the EU-27. Applied Economics, 45(9), 1133–1149. https://doi.org/10.1080/00036846.2011.613797
Easterly, W., & Rebelo, S. (1993). Fiscal policy and economic growth. Journal of Monetary Economics, 32(3), 417–458. https://doi.org/10.1016/0304-3932(93)90025-B
Eurostat. (2013). European system of accounts 2010. http://ec.europa.eu/eurostat/data/database
Eurostat, Organisation for Economic Co-operation and Development. (n.d.). Survey of national practices in estimating net stocks of structures. EUROSTAT-OECD.
Feenstra, R., Inklaar, R., & Timmer, M. (2015). The next generation of pen world tables. American Economic Review, 105(10), 3150–3182. https://doi.org/10.1257/aer.20130954
Global Infrastructure Hub. (2017). Global infrastructure outlook: Infrastructure investment needs, 50 countries, 7 sectors to 2040. Global Infrastructure Hub-Oxford Economics.
Global Infrastructure Hub. (2018). Global infrastructure outlook: Infrastructure investment needs in the compact with Africa countries (A G20 Initiative). Oxford: Global Infrastructure Hub-Oxford Economics.
Goldfarb, A., & Tucker, C. (2019). Digital economics. Journal of Economic Literature, 57(1), 3–43. https://doi.org/10.1257/jel.20171452
Harberger, A. C. (1978). Perspectives on capital and technology in less developed countries. In M. J. Artisare & A. R. Nebay (Eds.), Contemporary economic analysis (pp. 42–72). Routledge.
Hulten, C. (1996) Infrastructure capital and economic growth: How well you use it may be more important than how much you have (NBER Working Paper 5847). https://doi.org/10.3386/w5847
Hulten, C., & Wykoff, F. (1996). Issues in the measurement of economic depreciation: Introductory remarks. Economic Inquiry, 34, 10–23. https://doi.org/10.1111/j.1465-7295.1996.tb01361.x
INE-CV. (n.d.a). National accounts-main indicators (Old series, 1980–2007). National Statistical Office, Cape Verde.
INE-CV. (n.d.b). National accounts-main indicators (New series: 2007–2015). National Statistical Office, Cape Verde.
INE-CV. (n.d.c). Supply and use tables. National Statistical Office, Cape Verde.
INE-CV. (n.d.d). National accounts-main indicators (New series: 2015–2019). National Statistical Office, Cape Verde.
INE-CV. (2016). Cape Verde: Facts and figures. National Statistical Office, Cape Verde.
Inklaar, R., Woltjer, P., & Gallardo-Albarrán, D. (2019). The composition of capital and cross-country productivity comparisons. International Productivity Monitor, 36, 34–52.
Kamps, C. (2006). New estimates of government net capital stocks for 22 OECD countries, 1960–2001 (IMF Staff Papers). International Monetary Fund. https://doi.org/10.2307/30035911
Kodongo, O., & Ojah, K. (2016). Does infrastructure really explain economic growth in Sub-Saharan Africa?. Review of Development Finance, 6(2), 105–125. https://doi.org/10.1016/j.rdf.2016.12.001
Lopes, J. (2022). Construction in the economy and in national development. In G. Ofori (Ed.), Research companion to construction economics (pp. 104–125). Edward Elgar Publishing, UK. https://doi.org/10.4337/9781839108235.00013
Lopes, J., Oliveira, R., & Abreu, M. I. (2019). Estimating the built environment stock in Cape Verde. Engineering, Construction and Architectural Management, 26(5), 766–778. http://doi.org/10.1108/ECAM-07-2018-0290
Meng, J., Zhu, Y., & Han, Y. (2023). Can ‘new’ infrastructure become an engine of growth for the Chinese Economy?. Journal of Chinese Economic and Business Studies, 21(3), 341–362. https://doi.org/10.1080/14765284.2022.2036571
Maddison, A. (1987). Growth and slowdown in advanced capitalist economies. Journal of Economic Literature, 25, 649–698.
Organisation for Economic Co-operation and Development. (2001). Measuring capital – OECD manual (1 ed.). Paris, France.
Organisation for Economic Co-operation and Development. (2009). Measuring capital – OECD manual (2 ed.). Paris, France.
Organisation for Economic Co-operation and Development. (2013). Understanding the value of transport infrastructure – Guidelines for macro-level measurement of spending and assets. In The International Transport Forum.
Rodrik, D. (2016). Premature deindustrialization. Journal of Economic Growth, 21, 1–33. http://doi.org/10.1007/s10887-015-9122-3
Ruddock, L., & Ruddock, S. (2019). Wealth measurement and the role of built assets: An empirical comparison. Engineering, Construction and Architectural Management, 26(5), 814–826. http://doi.org/10.1108/ECAM-05-2018-0190
Ruddock, L., & Ruddock, S. (2022). Investment in Infrastructure as a key to sustainable economic recovery. International Journal of Strategic Property Management, 26(6), 439–449. https://doi.org/10.3846/ijspm.2022.18430
Stern, N. (1991). The determinants of growth. The Economic Journal, 101, 122–133. https://doi.org/10.2307/2233847
Straub, S. (2008). Infrastructure and growth in developing countries: Recent advances and research challenges (Policy Research Working Paper 446). The World Bank. https://doi.org/10.1596/1813-9450-4460
UK Office for National Statistics. (2019). Experimental comparisons of infrastructure across Europe. https://www.ons.gov.uk/economy/economicoutputandproductivity/productivitymeasures/articles/experimentalcomparisonsofinfrastructureacrosseurope/may2019
United Nations. (2008). International standard classification of all economic activities (ISIC) (Rev. 4). Department of Economic and Social Affairs, Statistical Division.
United Nations. (2009). The system of national accounts (SNS) 2008. United Nations Statistical Division.
Yülek, M. (2017). On the middle-income trap, the industrialization process and appropriate industrial policy. Journal of Industrial Competitiveness and Trade, 17, 325–348. https://doi.org/10.1007/s10842-016-0237-9
World Bank. (1994). World development report: Infrastructure for development. The Word Bank.
World Bank. (2017). Africa pulse: an analysis of issues shaping Africa’s economic future (Vol. 15). Office of the Chief Economist for the Africa Region, The World Bank.
World Bank. (2023a). World development indicators. https://databank.worldbank.org/source/world-development-indicators
World Bank. (2023b). Cape Verde economic update: Climate-related shocks and fiscal sustainability – potential impacts and policy options. The World Bank.