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Linking public investment to private investment. The case of the Spanish regions Author info | Abstract | Publisher info | Download info | Related research | Statistics Diego Martínez López () (Centro de Estudios Andaluces y Universidad Pablo de Olavide )
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Public investment constitutes one of the main axes of the regional policies. The existence of a direct link between infrastructure and regional income per capita is generally accepted. Also literature describes a positive effect of public investor effort on private capital accumulation. This paper seeks to offer empirical evidence of this latter relationship for the case of the Spanish regions over period 1965-1995. We use a crowding-out theoretical framework and panel data methodology. The results show a positive effect of productive and social public capital on private investment and productivity of private capital. The spillovers effects generated by infrastructures located in other regions do not seem to encourage private investment in an individual region.
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Paper provided by Centro de Estudios Andaluces in its series Economic Working Papers at Centro de Estudios Andaluces with number
E2001/04.
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Length: 25 pages
Date of creation: 2001Date of revision:
Handle: RePEc:cea:doctra:e2001_04Contact details of provider: Postal: c/ Bailén 50. 41001 Sevilla Phone: (34) 955 055 210 Fax: (34) 955 055 211 Email: Web page: http://www.centrodeestudiosandaluces.es More information through EDIRC
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Keywords: Crowding-out infrastructures panel data unit roots. Other versions of this item:
Find related papers by JEL classification: R53 - Urban, Rural, and Regional Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
José Manuel González-Páramo & Diego Martínez López, .
"Public Investment and Convergence in the Spanish Regions ,"
Studies on the Spanish Economy
112, FEDEA.
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Antonio Morales & Pablo Brañas Garza, 2003.
"Computational Errors in Guessing Games1 ,"
Economic Working Papers at Centro de Estudios Andaluces
E2003/11, Centro de Estudios Andaluces.
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