Title

Public Capital Formation and Economic Growth: Some International Evidence

Document Type

Article

Language

eng

Format of Original

13 p.

Publication Date

12-1995

Publisher

Springer

Source Publication

Journal of Productivity Analysis

Source ISSN

0895-562X

Abstract

This paper examines the proposition that public capital spending fosters productivity growth in the private sector using a pooled sample of seven OECD countries over the 1963–1988 period. The results indicate that there is a statistically significant positive relationship between public capital formation and the growth rate of labor productivity. This result is not sensitive to whether there is constant returns to scale to some or all inputs, whether the stochastic formulation of the pooled model is a fixed- or a random-effect specification, whether the model includes an energy variable, or whether the data are expressed in the log-differenced or logarithmic form.

Comments

Journal of Productivity Analysis, Vol. 6, No. 4 (December 1995): 283-295. DOI.

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