2005
DOI: 10.1080/00036840500118382
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Infrastructure investment and Canadian manufacturing productivity

Abstract: This paper examines the relationship between Canadian public infrastructure and private output using a Constant Elasticity and Substitution-Translog (CES-TL) cost model to describe the interaction of the public and private sectors. We find public capital a substitute for private capital within the Canadian manufacturing sector. Additionally, the services of public capital enhance the productivity of private capital. Canadian manufacturing costs are characterized by economies of scale, indicating that less than… Show more

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Cited by 19 publications
(14 citation statements)
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References 26 publications
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“…Their results obtained using annual time-series data for 1961-1995, reveal that there is strong evidence that public infrastructure plays an important role in the productivity of Canadian manufacturing industries and it is a substitute for private capital in the Canadian manufacturing sector. Also, employing a constant elasticity and substitution-translog cost model to determine the relationship between Canadian public infrastructure and private output, Brox and Fader (2005) finds similar resultsthe services of public capital enhance the productivity of private capital. Hulten and Isaksson (2007) posit that the relative importance of infrastructure in explaining differences in income and productivity levels depends on the stages of development.…”
Section: Literature Reviewmentioning
confidence: 67%
See 1 more Smart Citation
“…Their results obtained using annual time-series data for 1961-1995, reveal that there is strong evidence that public infrastructure plays an important role in the productivity of Canadian manufacturing industries and it is a substitute for private capital in the Canadian manufacturing sector. Also, employing a constant elasticity and substitution-translog cost model to determine the relationship between Canadian public infrastructure and private output, Brox and Fader (2005) finds similar resultsthe services of public capital enhance the productivity of private capital. Hulten and Isaksson (2007) posit that the relative importance of infrastructure in explaining differences in income and productivity levels depends on the stages of development.…”
Section: Literature Reviewmentioning
confidence: 67%
“…In fact, it has mostly followed a downward trajectory since the 1990s. For the period 2001-2005it reduced to 10.19% between 2006 and 2010 and further dipped to 9.88% between 2011 and 2015.…”
Section: Overview Of Manufacturing Value Added In Africamentioning
confidence: 96%
“…In Folge dieser Infrastrukturkontroverse wurden weitere Untersuchungen für die USA, aber auch für andere Länder durchgeführt (Berndt und Hansson, 1992; Munnell, 1992; Seitz, 1994; Fernald, 1999; Thangavelu und Owyong, 2000; Stephan, 2003; Brox und Fader, 2005). Empirische Ansätze zur Messung des Infrastruktureffekts verwenden einen Produktions‐, Kosten‐, oder (seltener) einen Profitfunktionsansatz (Sturm, de Haan und Kuper, 1996).…”
Section: Infrastrukturinvestitionen Als Regionalpolitisches Instruunclassified
“…These arguments are examined using Canadian data in Harchaoui (1997), and Brox and Fader (2005). All three papers employ cost functions for estimation.…”
Section: Introductionmentioning
confidence: 99%
“…They report that on average an increase in public capital reduces production costs in the private sector. Brox and Fader (2005) perform a similar exercise, arguing that public capital is an important input for firms. Taken together, the cost function studies imply that firms use public capital, and that its provision can affect cost structures.…”
Section: Introductionmentioning
confidence: 99%