By Organization for Economic Cooperation & Development (OECD)
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Extra resources for 16th International Symposium on Theory and Practice in Transport Economics - 50 Years of Transport Research: Experience Gained and Major Challenges Ahead
Tables 1 and 2 illustrate the different results obtained when public investment is financed through either public sector borrowing, budget subsidies or reduced current expenditure. Table 1. 9 Values expressed as percentage variations from reference values. * Value expressed as an absolute variation from reference values. Source: PDI (2000). 44 16th Symposium – 50 Years of Transport Research – ISBN 92-821-2333-2 - © ECMT, 2005 Table 2. 1 Values expressed as percentage variations from reference values.
Independently of the discussion as to whether or not a direct or indirect causal link exists between public investment and economic growth, the single-equation production model described above has been criticised by economists who argue that the model provided a static analysis based on elasticities, that it treated public capital like an exogenous variable and that it failed to take account of the possible relationship between the latter and private production. The use of multiple-equation models, in which possible relationships between these different economic variables are described, might avoid these earlier limitations.
World Bank (various years), World Development Indicators, World Bank, Washington, DC. 34 16th Symposium – 50 Years of Transport Research – ISBN 92-821-2333-2 - © ECMT, 2005 Economic Impacts of Infrastructure Investment: The Spanish Infrastructure Plan, 2000-2010 Rafael IZQUIERDO City University Madrid Spain 16th Symposium – 50 Years of Transport Research – ISBN 92-821-2333-2 - © ECMT, 2005 35 SUMMARY 1. INFRASTRUCTURE AS AN INSTRUMENT OF ECONOMIC STRATEGY .......................... 39 2. INVESTMENT IN TRANSPORT INFRASTRUCTURE AND ECONOMIC DEVELOPMENT: AN ON-GOING DEBATE ...........................................................................
16th International Symposium on Theory and Practice in Transport Economics - 50 Years of Transport Research: Experience Gained and Major Challenges Ahead by Organization for Economic Cooperation & Development (OECD)