Infrastructure investment and Canadian manufacturing productivity

  title={Infrastructure investment and Canadian manufacturing productivity},
  author={James A. Brox and Christina A. Fader},
This paper examines the relationship between Canadian public infrastructure and private output using a Constant Elasticity and Substitution-Translog (CES-TL) cost model to describe the interaction of the public and private sectors. We find public capital a substitute for private capital within the Canadian manufacturing sector. Additionally, the services of public capital enhance the productivity of private capital. Canadian manufacturing costs are characterized by economies of scale… CONTINUE READING