'New' Public Investment And/Or Public Capital Maintenance for Growth? The Canadian Experience

15 Pages Posted: 5 Jun 2006

See all articles by Pantelis Kalaitzidakis

Pantelis Kalaitzidakis

University of Crete - Department of Economics

Sarantis C. Kalyvitis

Athens University of Economics and Business - Department of International and European Economic Studies

Abstract

The article revisits the relationship between growth and public productive expenditures by investigating the growth impact of "new" public investment along with maintenance expenditures in public capital. We sketch out the importance of these components of public capital expenditures for growth and then use survey data from Canada to assess the impact of these variables on Canadian growth. We find evidence that the Canadian economy would benefit from a fall in total public capital expenditures and from a reallocation between new public investment and maintenance expenditures. We also identify the growth impact of the associated sectoral public capital expenditures. (JEL E22, E62, H21, H54)

Suggested Citation

Kalaitzidakis, Pantelis and Kalyvitis, Sarantis C., 'New' Public Investment And/Or Public Capital Maintenance for Growth? The Canadian Experience. Economic Inquiry, Vol. 43, Issue 3, pp. 586-600, 2005, Available at SSRN: https://ssrn.com/abstract=906254

Pantelis Kalaitzidakis (Contact Author)

University of Crete - Department of Economics ( email )

GR-74100 Rethymnon, GR-74100
Greece

Sarantis C. Kalyvitis

Athens University of Economics and Business - Department of International and European Economic Studies ( email )

Patission Str 76
GR-10434 Athens
Greece

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