DOES PUBLIC CAPITAL AFFECT PRIVATE-SECTOR PERFORMANCE - AN ANALYSIS OF THE SPANISH CASE, 1964-88

The possible influence of public capital accumulation on private sector economic performance is examined using Spanish data for the 1964-88 period. To do this, a simple aggregate production function for private output, including government-owned capital as a separate factor, is estimated by cointegration techniques. The results tend to support the view that the stock of public capital plays an important role in affecting private sector productivity.