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Public Capital and Total Factor Productivity. New Evidence from the Italian Regions

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Author Info
Sergio Destefanis () (CELPE and DISES, University of Salerno)
Vania Sena (LUBS, University of Leeds)

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Abstract

This paper analyses the relationship between industrial total factor productivity and public capital across the 20 Italian administrative regions. We add upon the existing literature in a number of ways: we allow for the role of human capital accumulation; we test for the existence of a long-run relationship adopting panel techniques (Im et al., 2001; Pedroni, 1997, 1999) and assess explicitly the direction of the long-run forcing relationship; we test the significance of public capital within a non-parametric set-up based on the Free Disposal Hull. The results show that public capital has a significant impact on the evolution of total factor productivity in the Southern regions, while this is not true in most of the Northern regions. Also, this impact is to be mainly ascribed to the so-called core infrastructures (road and airports, harbours, railroads, water and electricity, telecommunications).

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Publisher Info
Paper provided by CELPE (Centre of Labour Economics and Economic Policy), University of Salerno, Italy in its series CELPE Discussion Papers with number 73.

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Date of creation: Jul 2003
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Handle: RePEc:sal:celpdp:73

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Related research
Keywords: total factor productivity; public capital accumulation; long-run relationship; non-parametric frontiers;

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References listed on IDEAS
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  1. Aschauer, David Alan, 1989. "Is public expenditure productive?," Journal of Monetary Economics, Elsevier, vol. 23(2), pages 177-200, March. [Downloadable!] (restricted)
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  2. Christopher L. Cavanagh & Graham Elliott & James Stock, 1995. "Inference in Models with Nearly Integrated Regressors," University of California at San Diego, Economics Working Paper Series 95-29, Department of Economics, UC San Diego.
    Other versions:
  3. Federico Bonaglia & Eliana La Ferrara & Massimiliano Marcellino, 2000. "Public Capital and Economic Performance: Evidence from Italy," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 59(2), pages 221-244, September.
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  4. Raymond Batina, 1998. "On the Long Run Effects of Public Capital and Disaggregated Public Capital on Aggregate Output," International Tax and Public Finance, Springer, vol. 5(3), pages 263-281, July. [Downloadable!] (restricted)
  5. F. Bonaglia & L. Picci, 2000. "Lo stock di capitale nelle Regioni Italiane," Working Papers 374, Dipartimento Scienze Economiche, Universita' di Bologna. [Downloadable!]
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  6. Barro, Robert J, 1990. "Government Spending in a Simple Model of Endogenous Growth," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S103-26, October. [Downloadable!] (restricted)
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  7. Michele Boldrin & Fabio Canova, 2001. "Inequality and convergence in Europe's regions: reconsidering European regional policies," Economic Policy, CEPR, CES, MSH, vol. 16(32), pages 205-253, 04. [Downloadable!] (restricted)
  8. Brunello, Giorgio & Comi, Simona & Lucifora, Claudio, 2000. "The Returns to Education in Italy: A New Look at the Evidence," IZA Discussion Papers 130, Institute for the Study of Labor (IZA). [Downloadable!]
  9. repec:cup:etheor:v:11:y:1995:i:5:p:1131-47 is not listed on IDEAS
  10. Albala-Bertrand, J M & Mamatzakis, E C, 2001. "Is Public Infrastructure Productive? Evidence from Chile," Applied Economics Letters, Taylor and Francis Journals, vol. 8(3), pages 195-98, March. [Downloadable!] (restricted)
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