Linking public investment to private investment. The case of the Spanish regions

Diego Martínez

No E2001/04, Economic Working Papers at Centro de Estudios Andaluces from Centro de Estudios Andaluces

Abstract: Public investment constitutes one of the main axes of the regional policies. The existence of a direct link between infrastructure and regional income per capita is generally accepted. Also literature describes a positive effect of public investor effort on private capital accumulation. This paper seeks to offer empirical evidence of this latter relationship for the case of the Spanish regions over period 1965-1995. We use a crowding-out theoretical framework and panel data methodology. The results show a positive effect of productive and social public capital on private investment and productivity of private capital. The spillovers effects generated by infrastructures located in other regions do not seem to encourage private investment in an individual region.

Keywords: Crowding-out; infrastructures; panel data; unit roots. (search for similar items in EconPapers)
JEL-codes: C33 E62 H54 R53 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2001
New Economics Papers: this item is included in nep-geo and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Linking Public Investment to Private Investment. The Case of Spanish Regions (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:cea:doctra:e2001_04

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