This paper analyzes the relationship between infrastructure and economic growth in
Asian developing countries relying on an augmented Solow growth model with
infrastructure. Using fixed effect model in estimating the data from year 1986-2011, the
findings exhibit that generally all infrastructure sectors (road, rail lines, electricity
production, telephone, and mobile phone) has a positive and significant impact on
economic growth. Furthermore, the introduction of interaction dummies between regions
and physical infrastructure indicators give some important insight regarding
infrastructure and growth by region. Infrastructure in New Industrialized Economies
(NIEs) countries appears to have highest impact on NIEs� growth, followed by South
Asia (SA) and Association of Southeast Asia Nations (ASEAN) countries. However, the
results also indicate that infrastructure cannot promote economic growth alone. Even if
the infrastructure level is growing or improving, it does not mean that this is enough to
encourage economic growth