The relationship between public capital stock, private capital stock and economic growth in the Latin American and Caribbean countries
Matheus Koengkan (),
José Alberto Fuinhas () and
António Marques ()
Additional contact information
Renato Santiago: University of Beira Interior
José Alberto Fuinhas: University of Coimbra
International Review of Economics, 2020, vol. 67, issue 3, No 2, 293-317
Abstract In this study, we analysed the relationship between public capital stock, private capital stock and economic growth for a group of 30 Latin American and Caribbean countries from 1970 to 2014. To achieve our goals, the panel vector autoregression methodology, panel dynamic ordinary least squares and panel fully modified ordinary least squares estimators were used. The results from our estimations point to both public and private capital having a positive effect on the long-run economic growth of the countries in our sample. However, the results also point to public capital seeming to crowd private capital in the short run, which could consequently be one of the explanations for the adverse effect that public capital stock seems to have on growth. (A result which was also found in the short-run analysis.) These findings suggest that governments in Latin America and the Caribbean should continue to support public and private investment projects, given the positive effect that both types of capital seem to have on the long-run economic growth of these countries. However, some changes should be made in the planning and execution of such investments in order to avoid some undesirable effects that seem to exist, especially in the short run.
Keywords: Economic growth; Public capital stock; Private capital stock; Latin American and Caribbean countries (search for similar items in EconPapers)
JEL-codes: H54 O40 R11 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s12232-019-00340-x Abstract (text/html)
Access to the full text of the articles in this series is restricted.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:inrvec:v:67:y:2020:i:3:d:10.1007_s12232-019-00340-x
Ordering information: This journal article can be ordered from
http://www.springer. ... cy/journal/12232/PS2
Access Statistics for this article
International Review of Economics is currently edited by Luigino Bruni
More articles in International Review of Economics from Springer, Happiness Economics and Interpersonal Relations (HEIRS)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().