The effects of public spending composition on firm productivity
This paper exploits the unique institutional features of South Africa to estimate the impact of provincial public spending on health, education and transport on firm productivity. Our identification strategy is based on within industry-province differences between firms of the effects of public spending. We show that public spending composition affects firm productivity depending on the capital intensity of firms relative to the province-industry mean. Our data and empirical specification allow us to rule out that these results are affected by econometric problems that are commonly encountered when estimating the effects of fiscal policy and by unobserved industry- or province-specific productivity shocks. In contrast to related existing microeconomic evidence, we take into account the government budget constraint so that our results have clear policy implications.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Postal: L 7,1; D - 68161 Mannheim|
Web page: http://www.zew.de/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kevin HjortshÃ¸j O'Rourke & Richard S. Grossman & Madalina A. Ursu, 2013.
"A monthly stock exchange index for Ireland, 1864-1930,"
Economics Series Working Papers
120, University of Oxford, Department of Economics.
- Adam, Christopher S. & Bevan, David L., 2005. "Fiscal deficits and growth in developing countries," Journal of Public Economics, Elsevier, vol. 89(4), pages 571-597, April.
- Arnold, Jens Matthias & Mattoo, Aaditya & Narciso, Gaia, 2006.
"Services inputs and firm productivity in Sub-Saharan Africa : evidence from firm-level data,"
Policy Research Working Paper Series
4048, The World Bank.
- Jens Matthias Arnold & Aaditya Mattoo & Gaia Narciso, 2008. "Services Inputs and Firm Productivity in Sub-Saharan Africa: Evidence from Firm-Level Data," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 17(4), pages 578-599, August.
- Cyrille Schwellnus & Jens Arnold, 2008.
"Do Corporate Taxes Reduce Productivity and Investment at the Firm Level?: Cross-Country Evidence from the Amadeus Dataset,"
OECD Economics Department Working Papers
641, OECD Publishing.
- Jens Arnold & Cyrille Schwellnus, 2008. "Do Corporate Taxes Reduce Productivity and Investment at the Firm Level? Cross-Country Evidence from the Amadeus Dataset," Working Papers 2008-19, CEPII research center.
- Jean-Jacques Dethier & Maximilian Hirn & Stéphane Straub, 2011.
"Explaining Enterprise Performance in Developing Countries with Business Climate Survey Data,"
World Bank Research Observer,
World Bank Group, vol. 26(2), pages 258-309, August.
- Dethier, Jean-Jacques & Hirn, Maximilian & Straub, Stephane, 2008. "Explaining Enterprise Performance in Developing Countries with Business Climate Survey Data," Policy Research Working Paper Series 4792, The World Bank.
- Gabor Bekes & Balazs Murakozy, 2005. "Firm behaviour and public infrastructure - The Case of Hungary," IEHAS Discussion Papers 0504, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
- Norman Gemmell & Florian Misch & Blanca Moreno-Dodson, 2012.
"Public Spending for Long-Run Growth : A Practitioners' View,"
World Bank Other Operational Studies
17061, The World Bank.
- Norman Gemmell & Florian Misch & Blanca Moreno-Dodson, 2012. "Public Spending for Long-Run Growth: A Practitioners’ View," World Bank - Economic Premise, The World Bank, issue 99, pages 1-4, December.
- Gabe, Todd M., 2003. "Local Fiscal Policy and Establishment Growth," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 33(1).
- Reinikka, Ritva & Svensson, Jakob, 2002. "Coping with poor public capital," Journal of Development Economics, Elsevier, vol. 69(1), pages 51-69, October.
When requesting a correction, please mention this item's handle: RePEc:zbw:zewdip:13014. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.