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Capitale pubblico e produttività nelle regioni italiane

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  • R. Paci
  • S. Saddi

Abstract

This paper aims at contributing to the growing literature on the influence of public capital to the overall productivity levels. Using a panel of 20 Italian regions over the period 1970-1995 we estimate a production function which includes as inputs - units of labour, private capital and public capital. As a measure of public capital we compute the stock of public infrastructure at the regional level. A preliminary analysis shows that our series are cointegrated and this result ruled out the possibility of spurious regression in the estimation of the production function. Our results show that the estimated elasticity of output with respect to public capital is positive and statistically significant for the whole country and also for all the macro regions, with the exception of the Centre. Moreover, the disaggregation of public capital into functional categories emphasises the important role played by the infrastructures directly related to the economic production like transportation networks, telecommunications, airports.

Suggested Citation

  • R. Paci & S. Saddi, 2002. "Capitale pubblico e produttività nelle regioni italiane," Working Paper CRENoS 200201, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    • Handle: RePEc:cns:cnscwp:200201
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    References listed on IDEAS

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    1. R. Pala & E. Marrocu & R. Paci, 2000. "Estimation of total factor productivity for regions and sectors in Italy. A panel cointegration approach," Working Paper CRENoS 200016, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    2. Gramlich, Edward M, 1994. "Infrastructure Investment: A Review Essay," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1176-1196, September.
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    10. Garcia-Mila, Teresa & McGuire, Therese J & Porter, Robert H, 1996. "The Effect of Public Capital in State-Level Production Functions Reconsidered," The Review of Economics and Statistics, MIT Press, vol. 78(1), pages 177-180, February.
    11. Aschauer, David Alan, 1989. "Is public expenditure productive?," Journal of Monetary Economics, Elsevier, vol. 23(2), pages 177-200, March.
    12. Ferri, G. & Mattesini, F., 1997. "Finance, Human Capital and Infrastructure: An Empirical Investigation of Post-War Italian Growth," Papers 321, Banca Italia - Servizio di Studi.
    13. Kremers, Jeroen J M & Ericsson, Neil R & Dolado, Juan J, 1992. "The Power of Cointegration Tests," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 54(3), pages 325-348, August.
    14. Lucio Picci, 1999. "Productivity and Infrastructure in the Italian Regions," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 58(3-4), pages 329-353, December.
    15. Evans, Paul & Karras, Georgios, 1994. "Are Government Activities Productive? Evidence from a Panel of U.S. States," The Review of Economics and Statistics, MIT Press, vol. 76(1), pages 1-11, February.
    16. Mario Forni & Sergio Paba, 2000. "The Sources of Local Growth: Evidence from Italy," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 59(1), pages 1-49, April.
    17. Randall W. Eberts, 1986. "Estimating the contribution of urban public infrastructure to regional growth," Working Papers (Old Series) 8610, Federal Reserve Bank of Cleveland.
    18. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, vol. 108(1), pages 1-24, May.
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    Cited by:

    1. Alessandra Faggian & Bianca Biagi, 2003. "Measuring Regional Multipliers: a Comparison between two Different Methodologies for the case of the italian Regions," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2003(1).
    2. Emanuela Marrocu & Raffaele Paci, 2010. "The effects of public capital on the productivity of the Italian regions," Applied Economics, Taylor & Francis Journals, vol. 42(8), pages 989-1002.
    3. Valter Di Giacinto & Giacinto Micucci & Pasqualino Montanaro, 2012. "The Macroeconomic Impact of Infrastructures: A Literature Review and Empirical Analysis on the Case of Italy," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 1, March.
    4. Salvatore Amico Roxas & Antonio Cristofaro & Giuseppe Piroli, 2012. "Public Capital in the Private Sector of Italian Economy," EERI Research Paper Series EERI_RP_2012_19, Economics and Econometrics Research Institute (EERI), Brussels.
    5. Raffaello Bronzini & Piero Casadio & Giuseppe Marinelli, 2012. "What the Regional Transport Infrastructure Indicators Can and Cannot Tell Us," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 1, March.
    6. E. Marrocu & R. Paci & F. Pigliaru, 2006. "Gli effetti del capitale pubblico sulla produttività delle regioni italiane," Working Paper CRENoS 200601, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    7. Davide Piacentino & Erasmo Vassallo, 2011. "Exploring the sources of labour productivity growth and convergence in the Italian regions: some evidence from a production frontier approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 46(2), pages 469-486, April.

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    More about this item

    Keywords

    regional disparities; italy; public capital; production function;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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