Public Capital and Growth

35 Pages Posted: 4 Aug 2010

See all articles by Fabian Bornhorst

Fabian Bornhorst

International Monetary Fund (IMF)

Serkan Arslanalp

International Monetary Fund (IMF)

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

Bornhorst, Fabian and Arslanalp, Serkan and Gupta, Sanjeev and Sze, Elsa, Public Capital and Growth (July 2010). Available at SSRN: https://ssrn.com/abstract=1653189 or http://dx.doi.org/10.2139/ssrn.1653189

Fabian Bornhorst (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Serkan Arslanalp

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Sanjeev Gupta

International Monetary Fund (IMF) - Fiscal Affairs Department ( email )

700 19th Street, NW
Washington, DC 20431
United States

Elsa Sze

affiliation not provided to SSRN

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