Date
2010-12
Indexation documentaire
Croissance et développement économiques
Subject
Developing Countries; Capital Stocks; Public Capital
Code JEL
E62; E22; C82
Nom de la revue
Economics Bulletin
Volume
30
Numéro
4
Date de publication
12-2010
Pages article
3177-3187
Nom de l'éditeur
Vanderbilt University
Auteur
Arestoff, Florence
Hurlin, Christophe
Type
Article accepté pour publication ou publié
Résumé en anglais
In many poor countries, the problem is not that governments do not invest, but that these investments do not create productive capital. So, the cost of public investments does not correspond to the value of the capital stocks. In this paper, we propose an original non parametric approach to evaluate the efficiency function that links variations (net of depreciation) of stocks to public investments. We consider four sectors (electricity, telecommunications, roads and railways) of two Latin American countries (Mexico and Colombia). We show that there is a large discrepancy between the amount of investments and the value of increases in stocks.