In this paper we argue there are both empirical and theoretical reasons to distinguish between private and public investment in the Italian regional context that explain previous results of the null impact of aggregate investment on output growth. We base our empirical analysis on the theory by Futagami, Morita and Shibata (1993) estimating a dynamic panel data model using the system GMM estimator by Blundell and Bond (1998). In order to control for heterogeneity, also the Pooled Mean Group (PMG) estimator by Pesaran, Shin and Smith (1999) is considered. Only private investment results to influence the Italian regional growth positively.
A POSITIVE EFFECT OF INVESTMENT ON ITALIAN REGIONAL GROWTH
MAURO, LUCIANO;CARMECI, GAETANO
2004-01-01
Abstract
In this paper we argue there are both empirical and theoretical reasons to distinguish between private and public investment in the Italian regional context that explain previous results of the null impact of aggregate investment on output growth. We base our empirical analysis on the theory by Futagami, Morita and Shibata (1993) estimating a dynamic panel data model using the system GMM estimator by Blundell and Bond (1998). In order to control for heterogeneity, also the Pooled Mean Group (PMG) estimator by Pesaran, Shin and Smith (1999) is considered. Only private investment results to influence the Italian regional growth positively.Pubblicazioni consigliate
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