Infrastructure, conventions and private investment: An empirical investigation

FRAGA, JEFFERSON S.; Resende, Marco Flávio da Cunha

doi:10.1016/j.strueco.2022.03.006

Cited by 3 publications

(4 citation statements)

References 24 publications

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“…At the same time, economic public capital indirectly promotes enterprise technological innovation through its positive externalities to form industrial agglomeration. Economic public capital can provide basic conditions and investment opportunities for enterprise production and operation, guide enterprises to transfer to public capital-intensive areas, and form industrial agglomeration to affect enterprise technological innovation [18,19]. The social public capital includes education, science and technology, health and social security, culture and sports, public management, and other fields.…”

Section: The Influence Of Public Capital On Enterprise Technological ...mentioning

confidence: 99%

How Does Public Capital Affect Enterprise Technological Innovation Based on Empirical Evidence from Chinese Listed Companies

2023

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Public capital is an important force for promoting industrial agglomeration and enterprise technological innovation, and enterprise technological innovation is the core element in promoting green economic growth. To further reveal the influence mechanism of public capital on enterprise technological innovation, based on the data of A-share listed companies in China from 2007 to 2020, this paper uses the nonlinear moderating effect model and the intermediating effect model to verify the nonlinear influence and transmission mechanism of public capital on enterprise technological innovation. This paper discusses the influence and mechanism of public capital on enterprise innovation from the perspective of industrial agglomeration. The study finds that public capital has a significant role in promoting enterprise technological innovation. Moreover, economic public capital plays a greater role in promoting enterprise technological innovation than social public capital. Further analysis shows that the innovation effect of public capital is nonlinearly regulated by industrial agglomeration. In the initial stage of industrial agglomeration, the higher the degree of industrial agglomeration, the weaker the innovation effect of public capital; however, in the advanced stage of industrial agglomeration, the higher the degree of industrial agglomeration, the stronger the innovation effect of public capital. The nonlinear effect is realized by affecting the profits of enterprises. From enterprise heterogeneity, public capital has a significant role in promoting the technological innovation of non-state-owned enterprises but has no significant impact on the technological innovation of state-owned enterprises; public capital has a significant positive effect on the technological innovation of mid- and high-end technology enterprises, while its impact on the technological innovation of low-end technology enterprises is not significant. From the type of innovation output, public capital has a significant role in promoting enterprise green technology innovation, and the role of public capital in promoting enterprise green invention patents is greater than that of green utility model patents. This study provides a theoretical basis for government public capital investment decisions and empirical evidence for the sustainable development of enterprise technological innovation.

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Section: The Influence Of Public Capital On Enterprise Technological ...mentioning

confidence: 99%

How Does Public Capital Affect Enterprise Technological Innovation Based on Empirical Evidence from Chinese Listed Companies

2023

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“…The complementarity effect (crowding-in) occurs when investment in infrastructure increases the marginal productivity of private inputs (labor and capital) and, therefore, the rate of return on private capital, inducing new investments in the private sector (e.g. Fraga & da Cunha Resende, 2022;Sahoo & Dash, 2009;Turnovsky, 1996;Barro, 1990). The direct effect of increased marginal productivity occurs when the services provided by the augmented infrastructure become available to firms, reducing production costs (e.g.…”

Section: Econmentioning

confidence: 99%

“…Public and infrastructure investments, in this context, are positively associated with firms' investments as they stimulate demand growth (i.e. reduce idle capacity) through the multiplier effect of autonomous spending, fostering entrepreneurs' animal spirits Fraga & da Cunha Resende, 2022). In simpler terms, there is an accelerating effect through the expansion of aggregate demand in the economy, achieved by increasing the utilization of installed capacity.…”

Section: Econmentioning

confidence: 99%

“…Another channel through which these effects influence entrepreneurs' expectations is the government's role in diminishing uncertainty about the future. This is accomplished through active state planning, involving augmented public investments, infrastructure and institutions oriented toward economic development (Resende & Bittes Terra, 2017;Fraga & da Cunha Resende, 2022).…”

Section: Econmentioning

confidence: 99%

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Public investment, infrastructure and private investment in Brazil: is there a crowding-in effect?

Iasco-Pereira,

Duregger

2024

ECON

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PurposeOur study aims to evaluate the impact of infrastructure and public investment on private investment in machinery and equipment in Brazil from 1947 to 2017. The contribution of our article to the existing literature lies in providing a more comprehensive understanding of the presence or absence of the crowding effect in the Brazilian economy by leveraging an extensive historical database. Our central argument posits that the recent decline in private capital accumulation over the last few decades can be attributed to shifts in economic policies – moving from a developmentalist orientation to nondevelopmental guidance since the early 1990s, which is reflected in the diminished levels of public investment and infrastructure since the 1980s.Design/methodology/approachWe conducted a series of econometric regressions utilizing the autoregressive distributed lag (ARDL) model as our chosen econometric methodology.FindingsEmploying two different variables to measure public investment and infrastructure, our results – robust across various specifications – have substantiated the existence of a crowding-in effect in Brazil over the examined period. Thus, we have empirical evidence indicating that the state has influenced private capital accumulation in the Brazilian economy over the past decades.Originality/valueOur article contributes to the existing literature by offering a more comprehensive understanding of the crowding effect in the Brazilian economy, utilizing an extensive historical database.

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Editorial guide: Structural change in new structural economics

Wang

2023

Structural Change and Economic Dynamics

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Infrastructure, conventions and private investment: An empirical investigation

Cited by 3 publications

References 24 publications

How Does Public Capital Affect Enterprise Technological Innovation Based on Empirical Evidence from Chinese Listed Companies

How Does Public Capital Affect Enterprise Technological Innovation Based on Empirical Evidence from Chinese Listed Companies

Public investment, infrastructure and private investment in Brazil: is there a crowding-in effect?

Editorial guide: Structural change in new structural economics

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