02047cas a2200241 a 4500 AALejournalIMF017806 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484311127 1018-5941 BD-DhAAL BD-DhAAL Crivelli, Ernesto. Efficiency-Adjusted Public Capital, Capital Grants, and Growth / Ernesto Crivelli. Washington, D.C. : International Monetary Fund, 2017. 1 online resource (21 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Recent literature has explored the relationship between efficiency-adjusted public capital and economic growth. A debate on whether capital grants, and especially EU funds actually contribute to growth has gained prominence lately. This paper empirically assesses the relationship between the quality of public investment, capital grants, and growth in a sample of 43 emerging and peripheral economies over 1991-2015. To this end, the contribution of public capital to growth is estimated using efficiency-adjusted public capital stock series, constructed reflecting the quality of public investment management institutions. In addition, the determinants of effective public investment are analyzed. The results suggest that capital grants contribute positively to effective public investment, and the latter is significant in explaining variations in economic growth. Finally, the paper illustrates the impact of raising EU funds absorption on potential growth in emerging and peripheral EU countries. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2017/168 Full text available on IMF http://elibrary.imf.org/view/journals/001/2017/168/001.2017.issue-168-en.xml IMF e-Library