Public Capital and Growth Revisited: A Panel Data Assessment

12 Pages Posted: 25 Feb 1999

See all articles by Sebastien Dessus

Sebastien Dessus

World Bank - West Bank and Gaza Resident Mission

Remy Herrera

University of Angers - French National Center for Scientific Research (CNRS)

Multiple version iconThere are 2 versions of this paper

Abstract

This paper analyses the links between growth and public capital accumulation for a panel of 28 developing countries over eleven years (1981-1991). We estimate a simultaneous equations model to explain the GDP, as well as public and private capital formation. Accumulating public, private and human capital enhances growth. Nevertheless, public capital formation has produced an indirect crowding-out effect, since the budget constraint was differentiated between public and private sectors. Our results suggest that the majority of the sample countries tended rather to diverge from the optimal allocation of capital in terms of growth between public and private sectors.

JEL Classification: C33, H50, O11

Suggested Citation

Dessus, Sebastien and Herrera, Remy, Public Capital and Growth Revisited: A Panel Data Assessment. Available at SSRN: https://ssrn.com/abstract=147231 or http://dx.doi.org/10.2139/ssrn.147231

Sebastien Dessus (Contact Author)

World Bank - West Bank and Gaza Resident Mission ( email )

P.O. BOX 54842
Jerusalem
Israel
+972 2 236 65 49 (Phone)
+972 2 236 65 43 (Fax)

Remy Herrera

University of Angers - French National Center for Scientific Research (CNRS) ( email )

3, rue Michel-Ange
Paris cedex 16, 75794
France

Register to save articles to
your library

Register

Paper statistics

Downloads
341
Abstract Views
1,367
rank
88,973
PlumX Metrics