Examining the Effect of Macroeconomic, Institutional, and Capital Market Drivers on Infrastructure Investment

IF 7.9 2区经济学 Q1 ECONOMICS

Economic Analysis and Policy Pub Date : 2025-02-26 DOI:10.1016/j.eap.2025.02.038

João Pedro Gonçalves dos Santos , Vítor Manuel Ferreira Moutinho , Mara Madaleno , Zélia Maria da Silva Serrasqueiro Teixeira

{"title":"Examining the Effect of Macroeconomic, Institutional, and Capital Market Drivers on Infrastructure Investment","authors":"João Pedro Gonçalves dos Santos , Vítor Manuel Ferreira Moutinho , Mara Madaleno , Zélia Maria da Silva Serrasqueiro Teixeira","doi":"10.1016/j.eap.2025.02.038","DOIUrl":null,"url":null,"abstract":"<div><div>This work aims to identify the key drivers that have propelled infrastructure investment in the European Union. Using econometric analysis of panel data, we investigate the relative importance of macroeconomic, capital market, and institutional factors in determining infrastructure investment. All EU countries were selected (except Malta), and the data used centered on 1997 and 2020. Specifically, we use the Generalized Method of Moments (GMM) command to estimate the parameters in dynamic panel models. The use of the GMM econometric command in this research ensures more accurate and robust results, allowing for handling endogeneity and unobserved heterogeneity problems commonly encountered in panel data analysis. The results indicate that the macroeconomic variables overlap institutional issues and the local capital market's maturity level. Our findings shed light on the factors most relevant in driving infrastructure investment in the European Union and can inform the development of more effective public policies in this area.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"86 ","pages":"Pages 165-190"},"PeriodicalIF":7.9000,"publicationDate":"2025-02-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Economic Analysis and Policy","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0313592625000670","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"ECONOMICS","Score":null,"Total":0}

引用次数: 0

Abstract

This work aims to identify the key drivers that have propelled infrastructure investment in the European Union. Using econometric analysis of panel data, we investigate the relative importance of macroeconomic, capital market, and institutional factors in determining infrastructure investment. All EU countries were selected (except Malta), and the data used centered on 1997 and 2020. Specifically, we use the Generalized Method of Moments (GMM) command to estimate the parameters in dynamic panel models. The use of the GMM econometric command in this research ensures more accurate and robust results, allowing for handling endogeneity and unobserved heterogeneity problems commonly encountered in panel data analysis. The results indicate that the macroeconomic variables overlap institutional issues and the local capital market's maturity level. Our findings shed light on the factors most relevant in driving infrastructure investment in the European Union and can inform the development of more effective public policies in this area.

查看原文本刊更多论文

求助全文

约1分钟内获得全文求助全文

来源期刊

Economic Analysis and Policy ECONOMICS-

CiteScore

9.80

自引率

9.20%

发文量

231

审稿时长

93 days

期刊介绍： Economic Analysis and Policy (established 1970) publishes articles from all branches of economics with a particular focus on research, theoretical and applied, which has strong policy relevance. The journal also publishes survey articles and empirical replications on key policy issues. Authors are expected to highlight the main insights in a non-technical introduction and in the conclusion.