Public Capital and Output Growth in Portugal: An Empirical Analysis

January 1, 2000

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Format: Chicago

Jenny E Ligthart. Public Capital and Output Growth in Portugal: An Empirical Analysis, (USA: International Monetary Fund, 2000) accessed December 22, 2024

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.

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

Keywords: Capital, Capital productivity, Capital stock, Cointegration, Constant returns to scale, Engle-Granger result, Government debt management, Granger causality, Infrastructure, Least squares, Output effect, Public capital, Public investment, Public investment and public-private partnerships (PPP), Stocks, Time series, Utilization rate, Vector autoregression, WP

Publication Details

Pages:

37
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2000/011
Stock No:

WPIEA0112000
ISBN:

9781451842777
ISSN:

1018-5941

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