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The impact of infrastructure on productivity: new estimates for Québec

Author Info

Listed author(s):
  • Dorothée Boccanfuso

    ()

    (Département d'Économique, Université de Sherbrooke)

  • Marcelin Joanis

    ()

    (Département de mathématiques et génie industriel, Polytechnique Montréal)

  • Mathieu Paquet

    (Département d'Économique, Université de Sherbrooke)

  • Luc Savard

    ()

    (Département d'Économique, Université de Sherbrooke)

Abstract

Since the works of Aschauer (1989a) and Munnell (1990), several authors have attempted to establish a relationship between public infrastructure spending and productivity or economic growth. In this paper, we use the dual approach to model the contribution of public spending in infrastructure in the province of Quebec, which is the same approach that was proposed by Harchaoui and Tarkhani (2003) and applied to the Canadian economy. We use Quebec economy data to measure the contribution of public capital to sectoral economic growth for the 1997-2002 period. Our results confirm a positive relationship between public capital and economic growth albeit of smaller magnitude than those estimated in Harchaoui and Tarkhani (2003).

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File URL: http://gredi.recherche.usherbrooke.ca/wpapers/GREDI-1510.pdf
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Paper provided by Departement d'Economique de l'École de gestion à l'Université de Sherbrooke in its series Cahiers de recherche with number Classification-JEL: C13, D62, E22, H41, H54..

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Length: 20 pages
Date of creation: Sep 2015
Handle: RePEc:shr:wpaper:15-10
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Keywords: Infrastructure; investment; growth; productivity.;

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  1. Knud Munk, "undated". "Assessment of the Introduction of Road Pricing Using a Computable General Equilibrium Model," Regional and Urban Modeling 283600065, EcoMod.
  2. H. Ahmed & SM. Miller, 2000. "Crowding-out and crowding-in effects of the components of government expenditure," Contemporary Economic Policy, Western Economic Association International, vol. 18(1), pages 124-133, 01.
  3. Aschauer, David Alan, 1989. "Is public expenditure productive?," Journal of Monetary Economics, Elsevier, vol. 23(2), pages 177-200, March.
  4. Gramlich, Edward M, 1994. "Infrastructure Investment: A Review Essay," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1176-1196, September.
  5. John A. Tatom, 1991. "Public capital and private sector performance," Review, Federal Reserve Bank of St. Louis, issue May, pages 3-15.
  6. Alicia H. Munnell, 1990. "Why has productivity growth declined? Productivity and public investment," New England Economic Review, Federal Reserve Bank of Boston, issue Jan, pages 3-22.
  7. Racine, Jeff & Li, Qi, 2004. "Nonparametric estimation of regression functions with both categorical and continuous data," Journal of Econometrics, Elsevier, vol. 119(1), pages 99-130, March.
  8. Barro, Robert J, 1990. "Government Spending in a Simple Model of Endogenous Growth," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 103-126, October.
  9. Dorothée Boccanfuso & Marcelin Joanis & Patrick Richard & Luc Savard, 2014. "A comparative analysis of funding schemes for public infrastructure spending in Quebec," Applied Economics, Taylor & Francis Journals, vol. 46(22), pages 2653-2664, August.
  10. Klaus Conrad & Stefan Heng, 2002. "Financing road infrastructure by savings in congestion costs: A CGE analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 36(1), pages 107-122.
  11. Andrew Berg & Mumtaz Hussain & Shaun K. Roache & Amber A Mahone & Tokhir N Mirzoev & Shekhar Aiyar, 2007. "The Macroeconomics of Scaling Up Aid; Lessons from Recent Experience," IMF Occasional Papers 253, International Monetary Fund.
  12. Joannes Mongardini & Brett Rayner, 2009. "Grants, Remittances, and the Equilibrium Real Exchange Rate in Sub-Saharan African Countries," IMF Working Papers 09/75, International Monetary Fund.
  13. Macdonald, Ryan, 2008. "An Examination of Public Capital's Role in Production," Economic Analysis (EA) Research Paper Series 2008050e, Statistics Canada, Analytical Studies Branch.
  14. David A. Aschauer, 1989. "Back of the G-7 pack: public investment and productivity growth in the Group of Seven," Working Paper Series, Macroeconomic Issues 89-13, Federal Reserve Bank of Chicago.
  15. Alicia H. Munnell, 1992. "Policy Watch: Infrastructure Investment and Economic Growth," Journal of Economic Perspectives, American Economic Association, vol. 6(4), pages 189-198, Fall.
  16. Gu, Wulong & Macdonald, Ryan, 2009. "The Impact of Public Infrastructure on Canadian Multifactor Productivity Estimates," The Canadian Productivity Review 2008021e, Statistics Canada, Economic Analysis.
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