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Public investment allocation across Ecuadorian Provinces

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  • Aray, Henry
  • Pacheco-Delgado, Janeth

Abstract

We propose a theoretical framework which allows us to obtain a tractable equation for empirical implementation that relates the growth rate of public investment per capita by the central planner to variables typically associated with traditional public investment allocation criteria. Panel data for the Ecuadorian provinces over the period 2008–2015 are used. The results suggest that the central planner managed to deal with the traditional equity-efficiency trade-off, as well as the decongestion of some public services such as public transport and education. Additional evidence was also found that might raise suspicions regarding distributive politics.

Suggested Citation

  • Aray, Henry & Pacheco-Delgado, Janeth, 2020. "Public investment allocation across Ecuadorian Provinces," Socio-Economic Planning Sciences, Elsevier, vol. 71(C).
    • Handle: RePEc:eee:soceps:v:71:y:2020:i:c:s0038012119302605
    DOI: 10.1016/j.seps.2020.100830
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    Cited by:

    1. Trần Vân Anh, 2022. "State Management of Public Investment for Development: Empirical Study at Thai Binh Province of Vietnam," Journal of Public Administration and Governance, Macrothink Institute, vol. 12(2), pages 2133-2133, December.
    2. Segundo Camino-Mogro & Natalia Bermúdez-Barrezueta & Mary Armijos, 2023. "Is FDI a potential tool for boosting firm’s performance? Firm level evidence from Ecuador," Journal of Evolutionary Economics, Springer, vol. 33(2), pages 341-391, April.
    3. Henry Aray & Janeth Pacheco-Delgado, 2022. "Fiscal Decentralization and the Allocation of Public Spending of Subnational Governments. The Case of Ecuador," ThE Papers 22/01, Department of Economic Theory and Economic History of the University of Granada..

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    More about this item

    Keywords

    Public investment; Equity-efficiency trade-off; Political factors; Ecuador;
    All these keywords.

    JEL classification:

    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures

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