IDEAS home Printed from https://ideas.repec.org/a/mth/ber888/v14y2024i1p1-22.html
   My bibliography  Save this article

Are Public Investment and Education Expenditures Productive in the Argentine Case? A FMOLS and DOLS Analysis, 1960-2019

Author

Listed:
  • Miguel D. Ramirez

Abstract

This paper examines whether public investment spending and public education expenditures (a proxy for human capital) in Argentina have a positive and significant effect on economic output and labor productivity for the 1960-2019 period. The paper estimates a simple model that incorporates the impact of public and private investment spending, education expenditures (including at the secondary level), and the labor force. It presents a modified empirical counterpart to the simple model and tests for unit roots and performs both a Johansen cointegration test and a Gregory and Hansen cointegration test with an endogenously determined regime shift. FMOLS and DOLS long-run estimates for the 1960-2019 period suggest that public and private investment spending, government education expenditures, and the labor force have a positive and significant effect on the level of economic output and labor productivity. For comparison purposes, both methodologies are used because these estimators are extremely consistent, particularly the DOLS estimator, even in the presence of both endogeneity and serial correlation of any order. The concluding section summarizes the major results and discusses potential avenues for future research on this important topic.

Suggested Citation

  • Miguel D. Ramirez, 2024. "Are Public Investment and Education Expenditures Productive in the Argentine Case? A FMOLS and DOLS Analysis, 1960-2019," Business and Economic Research, Macrothink Institute, vol. 14(1), pages 1-22, December.
    • Handle: RePEc:mth:ber888:v:14:y:2024:i:1:p:1-22
    as

    Download full text from publisher

    File URL: https://www.macrothink.org/journal/index.php/ber/article/download/21617/16710
    Download Restriction: no
    File URL: https://www.macrothink.org/journal/index.php/ber/article/view/21617
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Shiller, Robert J. & Perron, Pierre, 1985. "Testing the random walk hypothesis : Power versus frequency of observation," Economics Letters, Elsevier, vol. 18(4), pages 381-386.
    2. Luiz R. de Mello Jr., 1997. "Foreign Direct Investment in Developing Countries: A Selective Survey," Studies in Economics 9701, School of Economics, University of Kent.
    3. Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
    4. Cardoso, Eliana, 1993. "Private Investment in Latin America," Economic Development and Cultural Change, University of Chicago Press, vol. 41(4), pages 833-848, July.
    5. J. M. Albala-Bertrand & E. C. Mamatzakis, 2001. "Is public infrastructure productive? Evidence from Chile," Applied Economics Letters, Taylor & Francis Journals, vol. 8(3), pages 195-198.
    6. Luiz de Mello, 1997. "Foreign direct investment in developing countries and growth: A selective survey," Journal of Development Studies, Taylor & Francis Journals, vol. 34(1), pages 1-34.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ramirez, M.D., 2009. "Public Capital Formation and Labor Productivity Growth in Argentina," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 9(1).
    2. Miguel D. Ramirez, 2020. "Public and Foreign Investment Spending in the Argentine Case. A Cointegration Analysis with Structural Breaks, 1960-2015," Bulletin of Applied Economics, Risk Market Journals, vol. 7(2), pages 49-76.
    3. Ramirez, Miguel D., 2008. "Are Foreign and Public Capital Productive in the Mexican Case? A Panel Unit Root and Panel Cointegration Analysis," Working Papers 49, Yale University, Department of Economics.
    4. Miguel Ramirez, 2004. "Is public infrastructure spending productive in the Mexican case? A vector error correction analysis," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 13(2), pages 159-178.
    5. Miguel Ramirez, 2002. "Public capital formation and labor productivity growth in Mexico," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 30(4), pages 366-379, December.
    6. Miguel D. Ramirez, 2006. "Does Foreign Direct Investment Enhance Labor Productivity Growth in Chile? A Cointegration Analysis," Eastern Economic Journal, Eastern Economic Association, vol. 32(2), pages 205-220, Spring.
    7. Mughal, Mazhar, 2008. "Boon or bane- role of FDI in the economic growth of Pakistan," MPRA Paper 16468, University Library of Munich, Germany.
    8. Fedderke, J.W. & Bogetic, Z., 2009. "Infrastructure and Growth in South Africa: Direct and Indirect Productivity Impacts of 19 Infrastructure Measures," World Development, Elsevier, vol. 37(9), pages 1522-1539, September.
    9. Miguel Ramirez & Zsófia Kőműves, 2014. "Economic Infrastructure, Private Capital Formation, and FDI Inflows to Hungary: A Unit Root and Cointegration Analysis with Structural Breaks," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 42(4), pages 367-382, December.
    10. Hugues Kouassi Kouadio & Landry Lewis Gakpa, 2021. "Financial Openness and Economic Growth in C?te d¡¯Ivoire: The Total Factor Productivity Channel," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 12(2), pages 138-149, April.
    11. Vinish Kathuria, 2019. "Growth and Investment: Testing for the Relationship for South Asian Countries," Millennial Asia, , vol. 10(3), pages 337-371, December.
    12. Akintoye V. Adejumo & Simplice A. Asongu, 2019. "Foreign Direct Investment, Domestic Investment and Green Growth in Nigeria: Any Spillovers?," Working Papers of the African Governance and Development Institute. 19/078, African Governance and Development Institute..
    13. Yoon Jung Choi & Jungho Baek, 2017. "Does FDI Really Matter to Economic Growth in India?," Economies, MDPI, vol. 5(2), pages 1-9, June.
    14. Jun, Sangjoon, 2015. "The Nexus between FDI and Growth in the SAARC Member Countries," East Asian Economic Review, Korea Institute for International Economic Policy, vol. 19(1), pages 39-70, March.
    15. Olajide Oladipo, 2013. "Does foreign direct investment cause long run economic growth? Evidence from the Latin American and the Caribbean countries," International Economics and Economic Policy, Springer, vol. 10(4), pages 569-582, December.
    16. Yaya Keho, 2020. "Impact of Foreign Direct Investment on Trade Balance: Evidence from Cote d’Ivoire," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 12(7), pages 113-113, July.
    17. SBIA, Rashid & Al Rousan, Sahel, 2015. "Does Financial Development Induce Economic Growth in UAE? The Role of Foreign Direct Investment and Capitalization," MPRA Paper 64599, University Library of Munich, Germany.
    18. Debashis Chakraborty & Jaydeep Mukherjee & Tanaya Sinha, 2012. "Is there any Long-run Relationship between India’s Current and Capital Account Balance? A Time Series Analysis," Global Business Review, International Management Institute, vol. 13(3), pages 433-447, October.
    19. Antonios Adamopoulos & Athanasios Vazakidis, 2019. "A System Equation Model A Comparative Study for G-7 Countries," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 69(4), pages 74-109, October-D.
    20. Fedderke, J.W. & Romm, A.T., 2006. "Growth impact and determinants of foreign direct investment into South Africa, 1956-2003," Economic Modelling, Elsevier, vol. 23(5), pages 738-760, September.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mth:ber888:v:14:y:2024:i:1:p:1-22. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Technical Support Office The email address of this maintainer does not seem to be valid anymore. Please ask Technical Support Office to update the entry or send us the correct address (email available below). General contact details of provider: http://www.macrothink.org/journal/index.php/ber .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.