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Public Capital and Output Growth in Portugal: An Empirical Analysis
Author:
Ms. Jenny E Ligthart
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Series:
IMF Working Papers
Volume/Issue:
Volume 2000: Issue 011
Language:
English
Publication Date:
01 Jan 2000
DOI:
https://doi.org/10.5089/9781451842777.001
ISBN:
9781451842777
ISSN:
1018-5941
Pages:
37
Keywords:
WP; capital stock; public capital; capital; cointegration; granger causality; infrastructure; public investment; Engle-Granger result; least squares; constant returns to scale; output effect; time series; utilization rate; Public investment and public-private partnerships (PPP); Stocks; Vector autoregression; Government debt management; Capital productivity
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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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.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2000: Issue 011