Effects of public infrastructure on cost structure and productivity in the private sector

Satya Paul*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

21 Citations (Scopus)

Abstract

This paper examines the effects of public infrastructure on the cost structure and productivity in the private sector in Australia. Translog cost functions incorporating public capital infrastructure are estimated for the aggregate private sector as well as for seven broad industry groups using annual time series data for 1968/69-1995/96. The effects of public infrastructure on productivity are measured in terms of both cost-saving and output-augmenting measures. The empirical results suggest that public infrastructure has a positive and significant impact on productivity in private sector industries. Public capital serves as a substitute for both private capital and labour. The rates of return to public capital are significant and vary over the sample period.

Original languageEnglish
Pages (from-to)446-461
Number of pages16
JournalEconomic Record
Volume79
Issue number247
DOIs
Publication statusPublished - Dec 2003
Externally publishedYes

Fingerprint

Dive into the research topics of 'Effects of public infrastructure on cost structure and productivity in the private sector'. Together they form a unique fingerprint.

Cite this