Analyzing the Impact of Public Capital on Private Capital Productivity in a Panel of African Nations

Elhadj Ezzahid and Hamid Rafik ()
Additional contact information
Elhadj Ezzahid: Department of Economics, Faculty of Law, Economic and Social Sciences Agdal, Mohammed V University, Rabat 6430, Morocco
Hamid Rafik: Department of Economics, Faculty of Law, Economic and Social Sciences Agdal, Mohammed V University, Rabat 6430, Morocco

Economies, 2024, vol. 12, issue 5, 1-18

Abstract: This research contributes to the ongoing discourse concerning the efficiency of public capital and its influence on the productivity of private capital and total factor productivity within African economies. Employing the standard production approach, we include public capital as a distinct input to assess its specific impact on output growth and the enhancement of total factor productivity. We argue that public capital, predominantly manifesting through infrastructure, constitutes an indispensable element for fostering growth. Fundamental to the productivity of private capital is its reliance on a sufficient stock of public infrastructure for operational efficiency. Our empirical analysis reveals that public capital exhibits a substantive long-term influence on output growth and the productivity of private capital. However, in the short term, the discernible impact of public capital is less pronounced. Moreover, while public capital emerges as a noticeable factor in output growth, its influence on total factor productivity remains relatively subdued.

Keywords: public capital; economic growth; total factor productivity; Africa (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2227-7099/12/5/118/pdf (application/pdf)
https://www.mdpi.com/2227-7099/12/5/118/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jecomi:v:12:y:2024:i:5:p:118-:d:1394569

Access Statistics for this article

Economies is currently edited by Ms. Adore Zhou

More articles in Economies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().