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Aggregate infrastructure capital stock and long-run growth: Evidence from Finnish data

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  • Luoto, Jani

Abstract

In this paper, Bayesian methods and the Finnish aggregate infrastructure capital series from 1860 to 2003 are used to explore how government infrastructure policy affects long-run output growth. We use Finnish data, since to the best of our knowledge the Finnish land and water construction investments series is the best available sufficiently long time series on aggregate infrastructure investments. The Finnish data provide strong and robust evidence indicating that permanent changes in government infrastructure policy have permanent effects on the growth rate of output.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Development Economics.

Volume (Year): 94 (2011)
Issue (Month): 2 (March)
Pages: 181-191

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Handle: RePEc:eee:deveco:v:94:y:2011:i:2:p:181-191

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Web page: http://www.elsevier.com/locate/devec

Related research

Keywords: Aggregate infrastructure capital stock Bayesian methods Long-run output growth;

References

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Citations

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Cited by:
  1. Augustin Kwasi Fosu, 2011. "Optimal public investment, growth, and consumption: Evidence from African countries," Economics Series Working Papers WPS/2011-22, University of Oxford, Department of Economics.
  2. Kwasi Fosu, Augustin & Getachew, Yoseph Yilma & Ziesemer, Thomas, 2011. "Optimal public investment, growth, and consumption: Evidence from African countries," MERIT Working Papers 051, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  3. Krüger, Niclas, 2012. "Does infrastructure really cause growth?: the time scale dependent causality nexus between infrastructure investments and GDP," Working papers in Transport Economics 2012:15, CTS - Centre for Transport Studies Stockholm (KTH and VTI).

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