The objective of this study is to analyze the effects of public investment on the level of production -measured by the Gross Value Added (GVA)- of the Peru's regions during the period 2001-2014. A quantitative analysis of correlational type is performed. Following the line of the new theories of regional development, three models are proposed that try to capture: the importance of the total public capital, of the public capital when it includes a variable of human development and of different types of public capital, to the regional production level per capita. The evidence supports the existence of a positive and significant relationship between public capital and the regional GVA regional per capita. In addition, it is found that causality (in the Granger sense) is unidirectional in most regions and flows from public capital to GVA. The results allow making policy proposals regarding the redirecting of public investments towards sectors that would tend towards the accumulation of human capital, if the regions present incipient levels of development.
Keywords:
Territorial development, public investment, economic growth
Castillo, M. (2016). The Public Investment Role in the Peru’s Regional Economic Performance: 2001-2014. Journal Studies of Public Policy, 2(2), 1–14. https://doi.org/10.5354/0719-6296.2016.44257
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