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Transport infrastructure has represented one of the cornerstones of development and cohesion strategies in the European Union (EU) and elsewhere in the world. However, despite the considerable funds devoted to it, its impact remains controversial. This paper revisits the question of to what extent transport infrastructure endowment - proxied by regional motorways - has contributed to regional growth in the EU between 1990 and 2004. It analyses infrastructure in relationship to other factors which may condition economic growth, such as innovation, migration, and the local 'social filter', taking also into account the geographical component of intervention in transport infrastructure and innovation. The results of the two-way fixed-effect (static) and difference GMM (dynamic) panel data regressions indicate that infrastructure endowment is a relatively poor predictor of economic growth and that regional growth in the EU results from a combination of an adequate 'social filter', good innovation capacity, both in the region and in neighbouring areas, and a region's capacity to attract migrants. The meagre returns of infrastructure endowment on economic growth raise interesting questions about the opportunity costs of further infrastructure investments across most of Western Europe. Resumen La infraestructura de transporte ha venido siendo una de las piedras angulares de las estrategias de desarrollo y cohesión en la Unión Europea ( UE) y el resto del mundo. Sin embargo, y a pesar de los considerables recursos que se le ha dedicado, su impacto es un tema controvertido. Este artículo revisa el interrogante de hasta que punto ha contribuido la dotación de infraestructura de transporte - representada por las autopistas regionales - al crecimiento regional en la UE entre 1990 y 2004. Se analiza la infraestructura en relación a otros factores que podrían condicionar el crecimiento económico, como la innovación, la migración, y el 'filtro social' local, teniendo en cuenta asimismo el componente geográfico de la intervención en la infraestructura de transporte y la innovación. Los resultados de las regresiones de datos de panel de efectos fijos (método estático) de doble vía y MGM por diferencias (método dinámico) indican que la dotación de infraestructura es un pobre indicador del crecimiento económico y que el crecimiento regional en la UE tiene su origen en una combinación de un 'filtro social' adecuado, en una buena capacidad innovadora tanto en la región como en áreas vecinas, y en la capacidad de la región de atraer migración. Los escasos retornos para el crecimiento económico de la dotación de infraestructura suscitan cuestiones interesantes sobre los costos de oportunidad de futuras inversiones en infraestructura para la mayoría de Europa Occidental. [ABSTRACT FROM AUTHOR]

Social capital, understood as norms of reciprocity and associational life, is supposed to provide a bottom-up approach to poverty alleviation world-wide. The World Bank says that social capital is a necessary condition for long-term development and that social capital is the capital of the poor. This paper will argue that much of the literature is too sanguine of the benefits of social capital for the poor. It is, of course, important to look at the extent to which social capital can help the poor. But how the conditions of the poor people can also affect their social capital is equally important to examine, and this has often been neglected by many scholars who have been busy to prove that social capital is a new paradigm of development. Based on qualitative interviews in two rural areas in Orissa, eastern India, this paper seeks to examine whether and to what extent poor people of the daily wage labour class benefit from their social capital. It then goes on to unpack the mechanisms in which the economic-political conditions under which poor people live and the spatiality of these conditions affect the production of social capital. By seeking to unpack the dialectical relation between social capital and poverty, the paper aims at problematizing the overly optimistic claims about social capital. It shows that it is untenable to posit social capital as an independent variable and poverty as a dependent variable because the economic-political conditions of poor people have an enormous constraining effect on social capital itself and its supposed material benefits for the poor. [ABSTRACT FROM AUTHOR]

Empirical evidence on aid volatility shows that it adversely impacts recipient countries. This study seeks to find if aid volatility matters in Tuvalu-a small aid recipient country in the Pacific. The study finds that, with a coefficient of variation of 0.49, aid volatility in Tuvalu is significant. It is also found that project aid is more volatile than aid that goes to budget support and routine programs such as scholarships. Aid volatility results in incomplete projects, high transaction costs, ' Dutch disease' and fiscal planning problems. To manage the adverse impacts of aid volatility, Tuvalu needs to strengthen its Consolidated Investment Fund to buffer for any disruptions in aid disbursements, provide a sound policy and institutional climate, target aid to budget support and programs instead of specific projects, and implement large infrastructure projects in phases. [ABSTRACT FROM AUTHOR]

This article employs cross-sectional data from 100 countries to analyze the main determinants of intercountry Internet diffusion rates. We set up an empirical model based on strong theoretical foundations, in which we regress Internet usage on variables that capture social, economic, and political differences between these countries. Our results support past findings that economic strength, infrastructure, and knowledge of the English language positively affect Internet connectivity. In addition to these indicators, the openness of a country, tertiary enrollment, and income equality are found to also have a significant positive effect on Internet diffusion. [ABSTRACT FROM AUTHOR]