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Efficiency-Adjusted Public Capital and Growth
Author:
Mr. Sanjeev Gupta
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,
Mr. Alvar Kangur
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Mr. Abdoul A Wane
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Mr. Chris Papageorgiou
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Series:
IMF Working Papers
Volume/Issue:
Volume 2011: Issue 217
Language:
English
Publication Date:
01 Sep 2011
DOI:
https://doi.org/10.5089/9781463903503.001
ISBN:
9781463903503
ISSN:
1018-5941
Pages:
35
Keywords:
WP; production function; public capital; Public capital stock; public investment efficiency; appraisal; selection; implementation; evaluation of public investment; growth accounting; investment process; ICRG investment profile; process carry; investment effort; management process; Public investment spending; Stocks; Capital productivity; Estimation techniques
Legal-disclaimer:
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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This paper constructs an efficiency-adjusted public capital stock series and re-examines the public capital and growth relationship for 52 developing countries. The results show that public capital is a significant contributor to economic growth. Although the estimated coefficient for the income share of public capital is larger in middle- than in low-income countries, the opposite is true for the marginal product of public capital. The quality of public investment, as measured by variables capturing the adequacy of project selection and implementation, are statistically significant in explaining variations in economic growth, a result mainly driven by low-income countries.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund