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Public Infrastructure and Regional Economic Developments

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What are the various channels through which public capital can influence regional economic activity? A review of recent empirical studies reveals that, among other findings, 1) public capital stock positively affects regional growth, primarily as an unpaid input into the production process; 2) public capital and private capital are complements in manufacturing; and 3) public capital stock has a positive influence on the start-up of firms.

Suggested citation: Eberts, Randall W. “Public Infrastructure and Regional Economic Developments,” Federal Reserve Bank of Cleveland, Economic Review, vol. 26, no. 1, pp. 15-27, 01.01.1990.

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