Infrastructure and Public R&D Investments, and the Growth of Factor Productivity in Us Manufacturing Industries

24 Pages Posted: 13 Sep 2000 Last revised: 30 Sep 2010

See all articles by M. Ishaq Nadiri

M. Ishaq Nadiri

New York University (NYU) - Department of Economics; National Bureau of Economic Research (NBER)

Theofanis P. Mamuneas

University of Cyprus - Department of Economics

Date Written: August 1994

Abstract

In this paper we examine the effects of publicly financed infrastructure and R&D capital on the cost structure and productivity performance of twelve two-digit U.S. manufacturing industries. A general framework is developed to measure contribution of demand, relative input prices, technical change, as well as publicly financed capital on total factor productivity growth. The magnitude of the contribution of these sources varies considerably across industries: in some changes in demand dominate while in others changes in technology or relative prices are the main contributors. Publicly financed infrastructure and R&D capital contribute to productivity growth. However, the magnitudes of their contribution vary considerably across industries and on the whole they are not the major contributors to TFP in these industries.

Suggested Citation

Nadiri, M. Ishaq and Mamuneas, Theofanis P., Infrastructure and Public R&D Investments, and the Growth of Factor Productivity in Us Manufacturing Industries (August 1994). NBER Working Paper No. w4845. Available at SSRN: https://ssrn.com/abstract=226511

M. Ishaq Nadiri (Contact Author)

New York University (NYU) - Department of Economics ( email )

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New York, NY 10011
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National Bureau of Economic Research (NBER)

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Theofanis P. Mamuneas

University of Cyprus - Department of Economics ( email )

75 Kallipoleos Street
P.O. Box 20537
1678 Nicosia
Cyprus

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