EIB Papers Volume 13. n°1/2008 - European Investment Bank

More documents

Recommendations

Info

40 Volume13 N°1 2008 EIB PAPERS infrastructure. This production value serves as a proxy for gross capital formation in transport infrastructure assets. This estimate is, of course, subject to major caveats. First, we cannot know how well the reported production value of, e.g., road construction companies, proxies the formation of road assets. Second, the data cover the construction and, to some extent, maintenance of highways, roads, railways, airfields, waterways, ports as well as sports facilities but not, e.g., bridges and tunnels. So the difference between sports facilities (which we would wish to exclude) and bridges and tunnels (which we would wish to include) introduces an error to the estimate. Bearing these caveats in mind, Figure B4 shows our best estimate of government transport investment in relation to the construction value of transport infrastructure. Figure B4. Construction value of transport infrastructure assets and estimated government sector share therein (GDP-weighted averages 2000-05, in percent of GDP) 2.0 1.5 1.0 0.5 0 Old member states Corporate Government Cohesion countries New member states Source: Eurostat, own calculations Note: Old member states include Austria, Belgium, Finland, France, Italy, Luxembourg, the Netherlands, Portugal, Spain and the United Kingdom. Cohesion countries include Portugal and Spain. New member states include Cyprus, Estonia, Latvia, Lithuania, Malta, Poland, Romania, the Slovak Republic and Slovenia. As regards the construction value of transport infrastructure, we see that at some 1 percent of GDP on average, 4,0 the old member states are well below the cohesion countries (1.8 percent of GDP) and the new 3,5 member states (1.7 percent of GDP). 3,0 The share of the government sector is above 60 percent in the old member states and cohesion countries, 2,5 while it is at 50 percent in the new member states. These differences reflect differences 2,0 in assets built (railways tend to be government while airports or ports are more often private), and also differences in the institutional set-up for providing infrastructure 1,5 assets. Take Austria, where the government share is lowest among the old member states 1,0 (30 percent). The Austrian network of motor- and expressways is controlled by ASFINAG, which is state 0,5 owned but classified outside the government sector. Investment by ASFINAG would therefore 0 be recorded as corporate sector investment and not part of government transport investment, explaining EU-15 the seemingly Cohesion low share of government NMS in overall transport infrastructure investment.
4. Composition of government investment and government infrastructure investment pre- 1990s This section presents developments in the composition of government investment in a longer time perspective, again with a special focus on transport. As explained in Section 2, the system of national accounting changed in 1995, so we need to resort to the previous version of the European System of Accounts, ESA 79, to discuss pre-1995 developments. To maximise the comparability of the discussion in this section with Sections 2 and 3, we start by replicating our aggregation in Section 2 using ESA 79 data. The functional breakdown in ESA 79 includes a separate category labelled Transportation and communication, which facilitates our analysis of government transport investment. In describing the evolution of the composition of government investment and the share of transport in it, we focus on the four biggest EU member states (France, Germany, Italy and the United Kingdom) and the period 1977-1993. To conclude this section, we consider observed changes in government (transport) investment in view of broader fiscal policy developments. 4.1 Composition of government investment The functional classification of government expenditure in ESA 79 was slightly different from that presented in Section 2. Table 2 below augments Table 1 by adding the classification of functions of government in ESA 79. Table 2. Functional breakdown of government investment, ESA 95 and ESA 79 Aggregation ESA 95 COFOG ESA 79 COFOG 1. Infrastructure Economic Affairs Agriculture, forestry, hunting and fishing Fuel and energy affairs and services Mining and mineral resource Transportation and communication Other economic affairs and services 2. Hospitals and schools Health Education 3. Public Goods Defence General Public Services Environment Order and Safety 4. Redistribution Housing Recreation Social Protection Source: Eurostat, own aggregation Health affairs and services Education affairs and services General public services Public order and safety affairs Defence affairs and services Expenditures not classified by major group Housing and community amenity services Recreational Social security and welfare services Comparisons over time are complicated by changes in national accounting standards. EIB PAPERS Volume13 N°1 2008 41
Page 1 and 2: EIB Papers • Volume 13 • No1
Page 3: Volume 13 • No1 • 2008 EIB Pape
Page 7 and 8: Preface This year the European Inve
Page 11: Infrastructure investment, growth a
Page 14 and 15: 12 Volume13 N°1 2008 EIB PAPERS of
Page 16 and 17: 14 Volume13 N°1 2008 EIB PAPERS th
Page 18 and 19: 16 Volume13 N°1 2008 EIB PAPERS pr
Page 20 and 21: 18 Volume13 N°1 2008 EIB PAPERS Pu
Page 22 and 23: 20 Volume13 N°1 2008 EIB PAPERS Fi
Page 24 and 25: 22 Volume13 N°1 2008 EIB PAPERS AB
Page 26 and 27: Government investment is not the sa
Page 28 and 29: Different types of government inves
Page 30 and 31: Infrastructure accounts for one-thi
Page 32 and 33: 30 Volume13 N°1 2008 EIB PAPERS Ha
Page 34 and 35: A common feature for the new member
Page 36 and 37: 34 Volume13 N°1 2008 EIB PAPERS Bo
Page 38 and 39: The share of transport in governmen
Page 40 and 41: The proxies are subject to caveats.
Page 44 and 45: The shares of infrastructure and ho
Page 46 and 47: 44 Volume13 N°1 2008 EIB PAPERS Ov
Page 48 and 49: There have been marked differences
Page 50 and 51: Government transport investment has
Page 52 and 53: Transport and other infrastructure
Page 54 and 55: 52 Volume13 N°1 2008 EIB PAPERS An
Page 56 and 57: References 54 Volume13 N°1 2008 EI
Page 60 and 61: In some countries a shock to public
Page 62 and 63: The analysis accounts for long-run
Page 64 and 65: Table 1. Some VAR studies (publishe
Page 66 and 67: The ratio of private capital to GDP
Page 68 and 69: 66 Volume13 N°1 2008 EIB PAPERS Ta
Page 70 and 71: Denmark 68 Volume13 N°1 2008 EIB P
Page 72 and 73: There is no systematic pattern for
Page 74 and 75: High variability of the public-capi
Page 76 and 77: Has the impact of public capital on
Page 78 and 79: Productivity of public capital incr
Page 80 and 81: The impact of public capital on out
Page 82 and 83: References 80 Volume13 N°1 2008 EI
Page 86 and 87: The economic cost of public funds c
Page 88 and 89: Most taxes are distortionary in tha
Page 90 and 91: The excess burden of taxation is du
Page 92 and 93:
90 Volume13 N°1 2008 EIB PAPERS on
Page 94 and 95:
92 Volume13 N°1 2008 EIB PAPERS Bo
Page 96 and 97:
While distorting taxes lead to a we
Page 98 and 99:
The modified approach suggests that
Page 100 and 101:
As the economic cost of public fund
Page 102 and 103:
100 Volume13 N°1 2008 EIB PAPERS B
Page 104 and 105:
Recent cost-of-funds estimates acco
Page 106 and 107:
While charging for the use of publi
Page 108 and 109:
The link between user fees and the
Page 110 and 111:
The choice of the social discount r
Page 112 and 113:
The economic cost of public funds c
Page 114 and 115:
References 112 Volume13 N°1 2008 E
Page 116 and 117:
114 Volume13 N°1 2008 EIB PAPERS A
Page 118 and 119:
High GDP growth in the new member s
Page 120 and 121:
Further productivity gains, includi
Page 122 and 123:
Table 2. Business constraints perce
Page 124 and 125:
122 Volume13 N°1 2008 EIB PAPERS T
Page 126 and 127:
Where fiscal positions were sound,
Page 128 and 129:
126 Volume13 N°1 2008 EIB PAPERS T
Page 130 and 131:
Despite progress, infrastructure de
Page 132 and 133:
Table 7. Infrastructure indicators
Page 134 and 135:
EU funds provide additional resourc
Page 136 and 137:
Various empirical studies confirm t
Page 138 and 139:
In some new member states there is
Page 140 and 141:
PPPs offer new opportunities to fin
Page 142 and 143:
Strong legal and institutional fram
Page 144 and 145:
Additional fiscal reporting - even
Page 146 and 147:
Fiscal adjustment and reforms need
Page 148 and 149:
146 Volume13 N°1 2008 EIB PAPERS B
Page 150 and 151:
148 Volume13 N°1 2008 EIB PAPERS E
Page 152 and 153:
150 Volume13 N°1 2008 EIB PAPERS
Page 154 and 155:
Page 156 and 157:
Page 158 and 159:
Page 160 and 161:
Page 164:
EIB Papers • Volume 13 • No1
show all

EIB Papers Volume 13. n°1/2008 - European Investment Bank

Create successful ePaper yourself

Delete template?

Save as template?