Public Capital and Growth

Serkan Arslanalp

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Fiscal Policy and Economic Growth Economic Growth and Productivity Economic Policies and Impacts

Abstract

This paper estimates the impact of public capital on economic growth for forty-eight OECD and non-OECD countries during 1960 - 2001. Using the production function and its extensions, it finds a positive - but concave - elasticity of output with respect to public capital, which is robust to changes in time intervals and varying depreciation rates. Furthermore, in non-OECD countries the growth impact of public capital is higher once longer time intervals are considered.

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2003Testing for unit roots in heterogeneous panels 2002Unit root tests in panel data: asymptotic and finite-sample properties 1989Is public expenditure productive?1996The composition of public expenditure and economic growth 2001What have we learned from a decade of empirical research on growth? It's Not Factor Accumulation: Stylized Facts and Growth Models 1999Roads to Prosperity? Assessing the Link Between Public Capital and Productivity 2003Institutions, infrastructure, and economic growth 20042 Fiscal Policy, Expenditure Composition, and Growth in Low-Income Countries

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