Public Capital and Output Growth in Portugal: An Empirical Analysis

Author/Editor:

Jenny E Ligthart

Publication Date:

January 1, 2000

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

The paper investigates the growth effects of public capital in Portugal using annual data for the period 1965-95. Both a production function and a vector autoregressive model are estimated. Public capital is shown to be a significant long-term determinant of output growth. The size of the estimated production elasticity indicates, in line with studies for other countries, a substantial growth payoff from public investment. Disaggregating public capital shows that investment related to, among other things, roads, railways, and airports is more productive than public investment in other major categories.

Series:

Working Paper No. 2000/011

Subject:

Capital productivity Econometric analysis Expenditure Financial institutions Government debt management Production Public financial management (PFM) Public investment and public-private partnerships (PPP) Stocks Vector autoregression

English

Publication Date:

January 1, 2000

ISBN/ISSN:

9781451842777/1018-5941

Stock No:

WPIEA0112000

Pages:

37

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