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The Effect of Port Infrastructures on Regional Production

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Essays on Port Economics

Part of the book series: Contributions to Economics ((CE))

Abstract

This study highlights the impact that investment in a project to expand the Port of Santander would have, and the effects of this investment on economic growth and employment in Cantabria. To this end a methodology based on estimating an aggregate production function has been used which, by applying econometric techniques of cointegration, detects a stable relationship between the regional output, employment, human capital, the supply of private capital and the port infrastructure. This approach measures the magnitude of the effects of an increase in the capital endowment of the port on private production, being complementary to results obtained using other economic research tools, such as input–output studies or social assessment projects through cost-benefit analysis.

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Notes

  1. 1.

    Public and private capital is complementary when the marginal productivity of private capital increases it making it the quantity of public capital available.

  2. 2.

    Remember that the increase in logarithm between two consecutive periods is approximately equal to the percentage increase of the variable.

  3. 3.

    Reviews of the literature on stationarity and integrity can be found in Dolado et al. (1990) or Banerjee et al. (1993), among others.

  4. 4.

    Then the alternative hypothesis would be that yt follows a stationary process AR(1).

  5. 5.

    In these studies, it is shown that for the simple sizes generally available standard tests may have low power against persistent alternatives.

  6. 6.

    See the study of Kwiatkowski et al. (1992).

  7. 7.

    The sum of the remainder squared divided into T − 1, with T being the sample size.

  8. 8.

    Of course, the value of the test depends on the number of lags chosen. Kwiatkowski et al. (1992) propose a value of, at most, eight. In this regard see also Phillips (1987) and Phillips and Perron (1988).

  9. 9.

    A variable is integrated in order d if its difference in order d admits a stationary and invertible ARMA representation. In that case xt is I(d). In particular, the concept of cointegration has often been applied to series that are integrated in the primary order, I(1).

  10. 10.

    If the variables are I(d) and there is a linear combination of these which is I(d–b), it is said that they are cointegrated to the order (d, b), CI(d, b).

  11. 11.

    Remember that these variables are not stationary.

  12. 12.

    The only cointegration vector would be normalized on any of the parameters, but its economic interpretation would be very doubtful.

  13. 13.

    In this estimate, under the null hypothesis of non-conitegration, the term which goes with the ECM coefficent is I(1), while the dependent variable is I(0).

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Author information

Authors and Affiliations

  1. University of Cantabria, Santander, Spain

    Pablo Coto-Millán & Ingrid Mateo-Mantecón

  2. University of Oviedo, Oviedo, Spain

    José Baños Pino

Authors
  1. Pablo Coto-Millán
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  2. José Baños Pino
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  3. Ingrid Mateo-Mantecón
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Corresponding author

Correspondence to Pablo Coto-Millán .

Editor information

Editors and Affiliations

  1. Fac. Ciencias Economicas y, Empresariales, Universidad de Cantabria, avenida de los Castros s/n, Santander, 39005, Spain

    Pablo Coto-Millán

  2. Facultad Ciencias Económicas y, Empresariales, Universidad Cantabria, Avenida de los Castros s/n, Santander, 39005, Spain

    Miguel Angel Pesquera

  3. Facultad Ciencias Económicas y, Empresariales, Universidad Cantabria, Avenida de los Castros s/n, Santander, 39005, Spain

    Juan Castanedo

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Coto-Millán, P., Pino, J.B., Mateo-Mantecón, I. (2010). The Effect of Port Infrastructures on Regional Production. In: Coto-Millán, P., Pesquera, M., Castanedo, J. (eds) Essays on Port Economics. Contributions to Economics. Physica, Heidelberg. https://doi.org/10.1007/978-3-7908-2425-4_14

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