The Role of Public Infrastructure Capital in Mexican Economic Growth
This paper develops and empirically implements a neoclassical growth model in which output depends on private capital and human capital as well as the quantity, means of financing, and efficiency of use of public capital. The empirical analysis is based on a cross section of 46 developing countries over the period from 1970 to 1990. In general, the paper finds empirical support for the importance of each of the three dimensions of public capital –quantity, financing, and efficiency– for long run standards of living and for transitional growth rates. The empirical results are applied to the recent performance of the Mexican economy.
Volume (Year): VII (1998)
Issue (Month): 1 (January-June)
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