Public investment and economic growth in El Paso

Azucena Gonzalez Monzon, University of Texas at El Paso


This research focuses on the impact from public capital stock on economic growth in El Paso, Texas. A time series analysis is used to gauge the dynamic relationship between public infrastructure and the productivity of this city's economy. An Error Correction model and a Vector Error Correction model are utilized to discover short-run and long-run impacts from public capital stock on the growth of this particular economy. The Vector Autoregressive model is used to determine causality amongst the variables and to determine the structure of this economy. This research finds that public infrastructure growth actually follows economic growth and private infrastructure growth. Two of the public capital stock components, highways and water and sewer mains, do have an impact on Gross Metropolitan Product. Neither the aggregate public capital stock nor any of its components cause changes in private capital stock growth. It is more apparent that private capital stock has an impact on economic growth in El Paso, rather than public capital stock.

Subject Area

Economics|Transportation planning|Urban planning

Recommended Citation

Gonzalez Monzon, Azucena, "Public investment and economic growth in El Paso" (2011). ETD Collection for University of Texas, El Paso. AAI1498290.