The Impact of Public Infrastructure Capital on Regional Manufacturing Production Cost

Seitz, Helmut; Licht, Georg

doi:10.1080/00343409512331348923

Cited by 59 publications

(31 citation statements)

References 17 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Three major instruments have been used to promote investment, for two of which parallels can be found in the Italian experience. As in Italy, the government has invested directly in infrastructure, in view of the strong complementarities between social overhead capital and business investment (Bach et al, 1994;Seitz and Licht, 1995) and, as in Italy, it has provided direct subsidies to capital formation (Lichtblau, 1993). Estimates suggest that roughly half of total investment has been financed by the public sector, through infrastructure spending and subsidies to firms, with private investment on average subsidized by one-third (Schmidt, 1996).…”

Section: Investmentmentioning

confidence: 99%

Will East Germany Become a New Mezzogiorno?

Boltho

Carlin

Scaramozzino

1997

Journal of Comparative Economics

View full text Add to dashboard Cite

Section: Investmentmentioning

confidence: 99%

Will East Germany Become a New Mezzogiorno?

Boltho

Carlin

Scaramozzino

1997

Journal of Comparative Economics

View full text Add to dashboard Cite

“…Several studies (e.g. Seitz andLicht, 1995, andMorrison andSchwartz, 1996) have estimated a fixed effect model to account for unobservable economy effects on the cost level. This is because these effects are assumed to be correlated with the arguments in the cost function, which means the random effect model cannot be considered.…”

Section: Regional Casementioning

confidence: 99%

External Effects and Cost of Production

Moreno

López‐Bazo

Vayá

et al. 2004

Advances in Spatial Econometrics

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Abstract:This paper addresses the role of external effects in the process of production. We define two types of external effects: those derived from inputs external to the firm but which affect its production, and those derived from externalities that cross the barriers of a given economy. Using a production function that explicitly considers the presence of both types of external effects, we derive a cost function by application of the duality theory. This cost function includes the external effects and at the same time it takes into consideration the different relationships between inputs. Two types of externalities across economies are then addressed: those arising from interactions across regions and those due to linkages across industries. We propose the application of spatial econometric techniques to test for the presence of such spillovers. For regional externalities, we focus on the physical interaction between regions, while sectoral interdependencies are obtained through the use of input-output relationships. Some specific characteristics of the resulting empirical model (cross-section and time-series dimension of the data and nonlinearity in some of the parameters) are discussed from a spatial viewpoint. We apply this framework to the case of manufacturing industries in the Spanish regional economies from 1980 to 1991. 1 "The Whole is more than the sum of the parts, in that, not only does the interrelation of parts bring out latent characteristics in each, as in any complex, but the complex as a whole takes on a new character not explainable out of the parts" (Hartshorne, 1939).

show abstract

“…(see, for example, Munell, 1992;Holtz-Eakin, 1994;Seitz and Licht 1995;Pereira and Roca-Sagalés, 2001;Zugasti et al, 2001;Rovolis and Spence 2001;Puig-Junoy, 2001;Kim and Lee, 2002;Fernandez and Montuenga-Gomez, 2003, Stephan, A., 2003, Sena and Destefanıs 2005, Karadağ et.al 2004, Deliktas et.al. 2009).…”

Section: Introductionmentioning

confidence: 99%

“…One should mention that most of the studies in this area have used either the production approach in which public capital is included as an additional productive factor (see, for example, Aschauer 1989; Munell 1992) or a dual approach in which public capital stock is included as an unpaid fixed input (see, for example, Seitz andLicht 1995, Rovolis andSpence 2001). On the other hand, some other studies have used two step method which estimates technical efficiency or inefficiency from the production function in the first step, and then estimate the relationship between public capital and technical efficiency in the second step (see for example, Kim and Lee, 2002;Fernandez and Montuenga-Gomez, 2003) 1 .…”

Section: Introductionmentioning

confidence: 99%

The Impact of Public Capital on the Efficiency of Private Manufacturing Industry at the Regional Level

Karadağ

2010

eab

View full text Add to dashboard Cite

The public capital installed in a region has an important role in the development of that region, because the studies in this area show us that public capital has an important role on the private sector performance. It is expected that public capital enhances private sector efficiency, and thus the output of that sector. As it is well known regional disparities still exist in Turkey. The research in this area shows that public capital can be used to reduce regional disparities. In this respect the main aim of this study is to investigate the impact of public capital formation on the efficiency of private manufacturing industries in Turkey at NUTS II level. While most of the studies in this area use public capital as a direct input for production, we assume that public capital has an effect on private output by enhancing technical efficiency. For the aim of the study, we employ data envelopment analysis to calculate efficiency scores by using a panel data of 25 regions at the first stage; afterwards we estimate the effects of public capital on private sector efficiency econometrically by using these scores. The results reveal that public capital has positive impact on private sector efficiency both at the regional level and regional level.

show abstract

The Impact of Public Infrastructure Capital on Regional Manufacturing Production Cost

Cited by 59 publications

References 17 publications

Will East Germany Become a New Mezzogiorno?

Will East Germany Become a New Mezzogiorno?

External Effects and Cost of Production

The Impact of Public Capital on the Efficiency of Private Manufacturing Industry at the Regional Level

Contact Info

Product

Resources

About