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Government policy and industrial investment determinants in Spanish regions

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  • Escribá, F. Javier
  • Murgui, Ma. José

Abstract

The aim of this paper is to analyse the effect of public policies on private industrial investment in Spanish regions by means of a dynamic panel regression model with data collected from 1980 to 2000. We derive and estimate a Euler investment equation that accounts for the influence of both technological and human capital and public infrastructure, which may affect regional efficiency and, therefore, industrial investment. Our results indicate that investment has been sensitive to public infrastructure, particularly in the 1980s, while the effect of human capital was felt throughout the period.

Suggested Citation

  • Escribá, F. Javier & Murgui, Ma. José, 2009. "Government policy and industrial investment determinants in Spanish regions," Regional Science and Urban Economics, Elsevier, vol. 39(4), pages 479-488, July.
  • Handle: RePEc:eee:regeco:v:39:y:2009:i:4:p:479-488
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    References listed on IDEAS

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    Keywords

    Panel data Industrial investment Government policies Regions;

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