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dc.contributor.authorLicht, Georgen_US
dc.contributor.authorSeitz, Helmuten_US
dc.description.abstractThis paper examines whether the productivity growth in the West-German states is influenced by the provision of public infrastructure. Medium-term labour productivity growth and output growth varies a lot between German states. This differences are more pronounced during the eighties. The traditional total factor productivity shows a smaller difference than labour productivity. The regional differences in the productivity growth rates can only partly be attributed to the differences in factor input growth. We estimate a translog-cost-function for the period 1970-1988 for 11 German states using a three-equation fixed-effects panel data model. We show that there are important cost-saving effects that are associated with public services. Likewise, the demand for labour, and the private investment demand for structures and equipment is effected by public capital goods. Our estimates indicate that public capital formation encourages private investment. This effect is especially strong with respect to the private demand for structures. These results confirm that regional or urban economic growth can be forstered by the government by public investment.en_US
dc.publisherZentrum für Europäische Wirtschaftsforschung (ZEW) Mannheimen_US
dc.relation.ispartofseriesZEW Discussion Papers 93-10en_US
dc.subject.stwRegionale Disparitäten_US
dc.titleRegional productivity growth and investments in public infrastructure: the case of Germanyen_US
dc.typeWorking Paperen_US
Appears in Collections:ZEW Discussion Papers, Zentrum für Europäische Wirtschaftsforschung (ZEW)
Publikationen von Forscherinnen und Forschern des Zentrums für Europäische Wirtschaftsforschung (ZEW)

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