Public investments and regional development: The role of regional multipliers

Abstract

In this article, the method of estimation of regional multipliers is analyzed by using a multiregional inputoutput analysis and the regional multipliers for the 51 prefectures of Greece are also estimated. The regional multipliers are used for the estimation of the impacts, which public investments produce on the economy of regions. Also, the distribution of the investments in the prefectures of Greece is investigated, so that the same level of economic impact and long-term economic convergence are achieved in every region. Finally, the per inhabitant increase of the output for each prefecture resulting from the expenditures for the materialization of public and private investments in the years 199195 is estimated. This article refers to the economic changes that are caused in the phase of materialization of public investments, that is, the short-term and the middle-term impacts.