The effects of public spending composition on firm productivity

Kneller, Richard and Misch, Florian (2014) The effects of public spending composition on firm productivity. Economic Inquiry, 52 (4). pp. 1525-1542. ISSN 1465-7295

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Abstract

This paper exploits the unique institutional features of South Africa to estimate the impact of provincial public spending on firm productivity. In contrast to existing microeconomic evidence, we explore the effects of fiscal expenditures and remove the effects of revenue raising policies. Our identification strategy is based on differences in the effects of public spending across firms within the same industry and province. We show that public spending composition affects productivity depending on the capital intensity of firms, with less capital intensive firms being particularly affected. These effects appear to be robust.

Item Type: Article
Additional Information: This is the peer reviewed version of the following article: Kneller, R. and Misch, F. (2014), The effects of public spending composition on firm productivity. Economic Inquiry, 52: 1525–1542. doi: 10.1111/ecin.12092 which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1111/ecin.12092/full This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.
Keywords: Public Spending Composition, Productive Public Spending, Firm Productivity
Schools/Departments: University of Nottingham UK Campus > Faculty of Social Sciences > School of Economics
Identification Number: https://doi.org/10.1111/ecin.12092
Depositing User: Kesaite, Viktorija
Date Deposited: 30 Jul 2015 07:48
Last Modified: 23 Sep 2016 11:42
URI: http://eprints.nottingham.ac.uk/id/eprint/29429

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