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Public investment spillovers in the spanish regions

Author

Listed:
  • Roca Sagalés, Oriol

    (Universitat Autònoma de Barcelona)

  • Sala Lorda, Héctor

    (Universitat Autònoma de Barcelona)

Abstract

In this paper we investigate the effect of public investment on output, employment and private investment in Spain and its regions, and evaluate the relevance and magnitude of the resulting regional spillover effects. To this aim, we estimate different models using the Autoregressive Vector (VAR) approach and find a positive impact in Spain and the majority of regions on GDP, private investment and, to a lesser extent, on employment. We also find significant spillover effects, whose economic relevance is interpreted from a regional perspective.

Suggested Citation

  • Roca Sagalés, Oriol & Sala Lorda, Héctor, 2006. "Public investment spillovers in the spanish regions," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 8, pages 143-161.
    • Handle: RePEc:ris:invreg:0157
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    More about this item

    Keywords

    Spillover effects; regional analysis; VAR; public capital stock;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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