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Regional Infrastructure Policy and its Impact on Productivity: A Comparison of Germany and France

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Stephanie Aubert
Andreas Stephan

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Abstract

This paper describes the different institutional frameworks for planning and financing of infrastructure in Germany and France. Furthermore, the economic effects of infrastructure are estimated econometrically for German and French regions. We find evidence, that regional road infrastructure has a significant impact on regional output. However, if the heterogeneity of parameters between German and French regions is taken into account, we find that only for France the impact of infrastructure is significant, whereas the results for the 11 West German Bundesländer, depending on the specification, are not as clear-cut as for the French regions.

ZUSAMMENFASSUNG - (Regionale Infrastrukturpolitik und ihre Auswirkung auf die Produktivität: Ein Vergleich von Deutschland und Frankreich)
Die Arbeit beschreibt die unterschiedlichen institutionellen Rahmenbedingungen, unter welchen Planung und Finanzierung von Infrastruktur in Deutschland und Frankreich realisiert werden. Weiterhin werden die wirtschaftlichen Effekte von Infrastruktur ökonometrisch für deutsche und französische Regionen geschätzt. Es wird Evidenz dafür gefunden, dass regionale Straßeninfrastruktur in den meisten der getesteten Spezifikationen einen signifikanten Einfluss auf den regionalen Output hat. Wird allerdings auch Heterogenität der Parameter zwischen deutschen und französischen Regionen berücksichtigt, zeigt sich, dass nur für Frankreich der Produktivitätseffekt von Straßeninfrastruktur signifikant ist, während die Ergebnisse für die 11 deutschen Bundesländer, in Abhängigkeit von der verwendeten Spezifikation, nicht eindeutig sind.

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Paper provided by Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG) in its series CIG Working Papers with number FS IV 00-02.

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Length: 42 pages
Date of creation: Feb 2000
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Handle: RePEc:wzb:wzebiv:fsiv00-02

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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.:
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  3. Holtz-Eakin, Douglas, 1994. "Public-Sector Capital and the Productivity Puzzle," The Review of Economics and Statistics, MIT Press, vol. 76(1), pages 12-21, February. [Downloadable!] (restricted)
  4. Douglas Holtz-Eakin & Amy Schwartz, 1995. "Spatial productivity spillovers from public infrastructure: Evidence from state highways," International Tax and Public Finance, Springer, vol. 2(3), pages 459-468, October. [Downloadable!] (restricted)
  5. Aschauer, David Alan, 1989. "Does public capital crowd out private capital?," Journal of Monetary Economics, Elsevier, vol. 24(2), pages 171-188, September. [Downloadable!] (restricted)
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  6. Douglas Holtz-Eakin & Amy Ellen Schwartz, 1995. "Spatial Productivity Spillovers from Public Infrastructure: Evidence from State Highways," NBER Working Papers 5004, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. Gramlich, Edward M, 1994. "Infrastructure Investment: A Review Essay," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1176-96, September. [Downloadable!] (restricted)
  8. Christensen, Laurits R & Jorgenson, Dale W & Lau, Lawrence J, 1973. "Transcendental Logarithmic Production Frontiers," The Review of Economics and Statistics, MIT Press, vol. 55(1), pages 28-45, February. [Downloadable!] (restricted)
  9. Ottaviano, Gianmarco I. P. & Thisse, Jacques-Francois, 2002. "Integration, agglomeration and the political economics of factor mobility," Journal of Public Economics, Elsevier, vol. 83(3), pages 429-456, March. [Downloadable!] (restricted)
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  10. David Alan Aschauer, 1988. "Government spending and the "falling rate of profit."," Economic Perspectives, Federal Reserve Bank of Chicago, issue May, pages 11-17. [Downloadable!]
  11. Funke, Michael & Strulik, Holger, 1999. "Regional growth in West Germany: convergence or divergence?," Economic Modelling, Elsevier, vol. 16(4), pages 489-502, December. [Downloadable!] (restricted)
  12. Seitz, Helmut, 1995. "The Productivity and Supply of Urban Infrastructures," The Annals of Regional Science, Springer, vol. 29(2), pages 121-41, May.
  13. Munnell, Alicia H, 1992. "Infrastructure Investment and Economic Growth," Journal of Economic Perspectives, American Economic Association, vol. 6(4), pages 189-98, Fall. [Downloadable!] (restricted)
  14. Conrad, Klaus & Seitz, Helmut, 1994. "The Economic Benefits of Public Infrastructure," Applied Economics, Taylor and Francis Journals, vol. 26(4), pages 303-11, April.
  15. Alicia H. Munnell & Leah M. Cook, 1990. "How does public infrastructure affect regional economic performance?," New England Economic Review, Federal Reserve Bank of Boston, issue Sep, pages 11-33.
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  16. Martin, Philippe, 1999. "Public policies, regional inequalities and growth," Journal of Public Economics, Elsevier, vol. 73(1), pages 85-105, July. [Downloadable!] (restricted)
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  17. Cadot, Olivier & Röller, Lars-Hendrik & Stephan, Andreas, 1999. "A Political Economy Model of Infrastructure Allocation: An Empirical Assessment," CEPR Discussion Papers 2336, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  18. Garcia-Mila, Teresa & McGuire, Therese J & Porter, Robert H, 1996. "The Effect of Public Capital in State-Level Production Functions Reconsidered," The Review of Economics and Statistics, MIT Press, vol. 78(1), pages 177-80, February. [Downloadable!] (restricted)
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  19. Andreas Stephan, 1997. "The Impact of Road Infrastructure on Productivity and Growth: Some Preliminary Results for the German Manufacturing Sector," CIG Working Papers FS IV 97-47, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG). [Downloadable!]
  20. David Alan Aschauer, 1990. "Why is infrastructure important?," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, pages 21-68. [Downloadable!]
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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.)

  1. Balazs Egert & Tomasz Kozluk & Douglas Sutherland, 2009. "Infrastructure and Growth: Empirical Evidence," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  2. Torrisi, Gianpiero, 2009. "Public infrastructure: definition, classification and measurement issues," MPRA Paper 12990, University Library of Munich, Germany. [Downloadable!]
  3. Torrisi, Gianpiero, 2009. "A multilevel analysis on the economic impact of public infrastructure and corruption on Italian regions," MPRA Paper 15487, University Library of Munich, Germany. [Downloadable!]
  4. Fan, Shenggen & Chan-Kang, Connie, 2005. "Road development, economic growth, and poverty reduction in China:," Research reports 138, International Food Policy Research Institute (IFPRI). [Downloadable!]
    Other versions:
  5. Pedro R.D. Bom & Jenny E. Ligthart, 2009. "How Productive is Public Capital? A Meta-Regression Analysis," International Studies Program Working Paper Series, at AYSPS, GSU paper0912, International Studies Program, Andrew Young School of Policy Studies, Georgia State University. [Downloadable!]
  6. Enflo, Kerstin & Hjertstrand, Per, 2006. "Relative sources of European regional productivity convergence: A bootstrap frontier approach," Working Papers 2006:17, Lund University, Department of Economics. [Downloadable!]
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