Public Capital and Growth

Bornhorst, Fabian; Arslanalp, Serkan; Gupta, Sanjeev; Sze, Elsa

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Public Capital and Growth

IMF Working Paper No. 10/175

35 Pages Posted: 4 Aug 2010

See all articles by Fabian Bornhorst

Sanjeev Gupta

International Monetary Fund (IMF) - Fiscal Affairs Department

Elsa Sze

affiliation not provided to SSRN

Date Written: July 2010

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.

Keywords: Capital, Cross country analysis, Economic growth, Economic models, Public investment

Suggested Citation: Suggested Citation

Bornhorst, Fabian and Arslanalp, Serkan and Gupta, Sanjeev and Sze, Elsa, Public Capital and Growth (July 2010). IMF Working Paper No. 10/175, Available at SSRN: https://ssrn.com/abstract=1653189