Measuring the spillover effects of public capital: A bi-regional structural vector autoregressive analysis

Miguel A. Márquez, Julián Ramajo, Geoffrey J.D. Hewings

Research output: Contribution to journalArticlepeer-review

Abstract

In the framework of approaches to assessing the impact of public capital on economic growth, this paper estimates the dynamic effects of public infrastructure for the regions of Spain using a structural vector autoregressive (S-VAR) method. Methodologically, the main contribution is the proposal of a novel form (through bi-regional models) of estimating the spillover effects of one-time innovations in the public capital installed in a given region on the economic growth of the other regions of the country. From a policy perspective, the results highlight how these new models could contribute to the allocation of public investment in order to promote balanced regional growth, and provide new insights into the analysis of regional economic growth processes.

Original languageEnglish (US)
Pages (from-to)111-125
Number of pages15
JournalLetters in Spatial and Resource Sciences
Volume3
Issue number3
DOIs
StatePublished - Oct 2010

Keywords

  • Public Capital
  • Shocks
  • Spain
  • Spillovers
  • VAR

ASJC Scopus subject areas

  • Demography
  • Geography, Planning and Development
  • Urban Studies
  • Economics and Econometrics

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