Public investment in the infrastructure as the factor of regional economic development

The questions of efficient management of regional development are very important in the conditions of economic modernization. The search of directions and methods of economics development in the conditions of world financial crisis is very difficult. The objective of this paper is to evaluate the effects at the industry level of public investment in transportation infrastructures in Portugal and that public investment has a positive effect on both private inputs as well as on private output and that it affects labor productivity positively.