This paper analyses the relationship between industrial total factor productivity and public capital across the 20 Italian administrative regions. We add upon the existing literature in a number of ways: we analyse a longer period (1970-98); we allow for the role of human capital accumulation; we test for the existence of a long-run relationship between total factor productivity and public capital (through the panel techniques suggested in Im et al., 2001;Pedroni, 1997Pedroni, , 1999 and for weak exogeneity of public capital (Urbain, 1992); we assess the significance of public capital within a non-parametric set-up based on the Free Disposal Hull. The results confirm that public capital has a significant impact on the evolution of total factor productivity, particularly in the Southern regions. This impact is to be mainly ascribed to the core infrastructures (road and airports, harbours, railroads, water and electricity, telecommunications). Also, core infrastructures are found to be weakly exogenous.