Public capital and economic growth: a critical survey

Ward Romp and Jakob de Haan

No 2/2005, EIB Papers from European Investment Bank, Economics Department

Abstract: This paper provides an overview of both theoretical and empirical literature on the link between public investment (capital) and economic growth (national income). We first survey the channels through which public capital can conceivably affect growth. We then turn to reviewing the existing empirical literature, and we conclude that although not all studies find a growth-enhancing effect of public capital, there is now more consensus than in the past that public capital furthers economic growth. However, the impact reported by recent studies is not as big as some earlier studies suggested. We conclude with an overview of what is known about the optimality of public capital stocks. Ward

Keywords: public capital; economic growth (search for similar items in EconPapers)
JEL-codes: E62 H54 O40 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2005-06-06
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Citations: View citations in EconPapers (125)

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Related works:
Journal Article: Public Capital and Economic Growth: A Critical Survey (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:ris:eibpap:2005_002

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