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Infrastructure investment and Canadian manufacturing productivity

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  • James Brox
  • Christina Fader

Abstract

This paper examines the relationship between Canadian public infrastructure and private output using a Constant Elasticity and Substitution-Translog (CES-TL) cost model to describe the interaction of the public and private sectors. We find public capital a substitute for private capital within the Canadian manufacturing sector. Additionally, the services of public capital enhance the productivity of private capital. Canadian manufacturing costs are characterized by economies of scale, indicating that less than optimal plant sizes dominated Canadian manufacturing sector during the study period. Advances in disembodied technical progress are also indicated.

Suggested Citation

  • James Brox & Christina Fader, 2005. "Infrastructure investment and Canadian manufacturing productivity," Applied Economics, Taylor & Francis Journals, vol. 37(11), pages 1247-1256.
    • Handle: RePEc:taf:applec:v:37:y:2005:i:11:p:1247-1256
    DOI: 10.1080/00036840500118382
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    References listed on IDEAS

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    Cited by:

    1. Andreas Stephan, 2007. "Zur Politischen Ökonomie öffentlicher Infrastrukturausgaben," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 8(S1), pages 116-132, April.
    2. Sergio Jiménez Ramírez & Jaime Sanaú Villarroya, 2011. "Infraestructuras y productividad industrial en Colombia," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, December.
    3. Fedderke, J.W. & Bogetic, Z., 2009. "Infrastructure and Growth in South Africa: Direct and Indirect Productivity Impacts of 19 Infrastructure Measures," World Development, Elsevier, vol. 37(9), pages 1522-1539, September.
    4. Wang, Chao & Kim, Yul-Seong & Kim, Chi Yeol, 2021. "Causality between logistics infrastructure and economic development in China," Transport Policy, Elsevier, vol. 100(C), pages 49-58.
    5. Melvin Ayogu, 0. "Infrastructure and Economic Development in Africa: A Review-super- †," Journal of African Economies, Centre for the Study of African Economies, vol. 16(suppl_1), pages -126.
    6. Georgiev, Cvetomir, 2016. "Impacts of Public Infrastructure on Productivity in Ontario," 57th Transportation Research Forum (51st CTRF) Joint Conference, Toronto, Ontario, May 1-4, 2016 319274, Transportation Research Forum.
    7. Macdonald, Ryan, 2008. "An Examination of Public Capital's Role in Production," Economic Analysis (EA) Research Paper Series 2008050e, Statistics Canada, Analytical Studies Branch.

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