Empirical studies on the relationship between public and private investment and GDP growth

2006 ◽  
Vol 38 (11) ◽  
pp. 1259-1270 ◽  
Author(s):  
Yang Zou
Keyword(s):  
Empirical Studies ◽  
Private Investment ◽  
Gdp Growth ◽  
Public And Private ◽  
The Relationship

scholarly journals The Impact of Public Investment on Private Investment: A Disaggregated Analysis

2006 ◽  
Vol 45 (4II) ◽  
pp. 639-663 ◽  
Author(s):  
Noman Saeed ◽  
Kalim Hyder ◽  
Asghar Ali
Keyword(s):  
Public Investment ◽  
Empirical Studies ◽  
Empirical Work ◽  
Private Investment ◽  
Economic Literature ◽  
Public And Private ◽  
Multiplier Effect ◽  
The Impact ◽  
The Relationship ◽  
Statistical Results

The impact of public investment on private investment has been a matter of great interest in economic literature. Classical economists believed that public investment crowds out private investment. While Keynesian economists counter this argument and argued that public investment increases or crowds in private investment because of the multiplier effect. Many of the empirical studies have directly examined this by testing whether a statistically significant relationship exists or not, between public investment and private investment. The empirical work appears with mixed statistical results on the relationship between public and private investment. Results of Erenburg and Wohar (1995), Pereira (2001, 2003), Pereira and Roca-Sagales (2001), Hyder (2002) and Naqvi (2002) showed that public investment crowds in private investment while Pradhan, Ratha and Sarma (1990), Haque and Montiel (1993), Ahmed (1994), Voss (2002) and Narayan (2004) showed that public investment crowds out private investment.

scholarly journals Public / Private Investment Linkages: A Multivariate Cointegration Analysis

2005 ◽  
Vol 44 (4II) ◽  
pp. 805-817
Author(s):  
Abdul Rashid
Keyword(s):  
Public Investment ◽  
Empirical Studies ◽  
Private Investment ◽  
Developed Countries ◽  
Cointegration Analysis ◽  
Public And Private ◽  
Empirical Results ◽  
Long Run ◽  
Stable Association ◽  
The Developed Countries

The issue of whether public investment crowds out or crowds in private investment has received considerable attention in the economic literature. Most of the empirical studies that examined the long run stable association between public and private investment have focused on examining this relationship for the developed countries with very little attention on the developing countries. The empirical results of these studies, however, are highly controversial. The existing empirical studies in this area can be divided into three categories. The studies in the first category including Barro (1974), Kormendi (1983), and Feldstein (1982) have examined the empirical implications of the Ricardian equivalence hypothesis (REH). The empirical results of most of the studies in this category were supportive of the REH. Seater (1993) argues that good empirical studies generally provide evidence in support of the REH; however, some studies refute it owing to the lake of econometric accuracy.

scholarly journals THE THEORETICAL APPROACHES TO ASSESSING EFFECTS OF MILITARY EXPENDITURE ON GROWTH

2018 ◽  
Vol 6 (3) ◽  
pp. 1-5
Author(s):  
Гаяне Арутюнян ◽  
Gayane Harutyunyan
Keyword(s):  
Economic Growth ◽  
Statistical Analysis ◽  
Empirical Studies ◽  
Military Expenditure ◽  
Economic Thought ◽  
Gdp Growth ◽  
Theoretical Approaches ◽  
Military Expenditures ◽  
To Come ◽  
The Relationship

Research of the relationship between economic growth and military expenditures has been one of the central issues in the economic debates since 1980s, but the theorists failed to come to consensus on this issue via empirical studies. Hence, studies of some statistical evidence suggest logical question: whether military expenditures contribute to economic growth, or on the contrary, economic growth enables to increase countries military spending? In this paper, we have analyzed the main economic thought school’s approaches to assessment of military expenditure impact on growth, in order to reveal the mechanisms of this impact. Then by statistical analysis we have found out how the relationship between military expenditure and GDP was manifested in Armenia. Based on the analysis results, we concluded that military expenditures haven’t stimulated GDP growth in Armenia.

scholarly journals Crowding-in or Crowding-out? Modelling the Relationship between Public and Private Fixed Capital Formation Using Co-integration Analysis: The Case of Pakistan 1964-2000

2002 ◽  
Vol 41 (3) ◽  
pp. 255-276 ◽  
Author(s):  
Naveed H. Naqvi
Keyword(s):  
Economic Growth ◽  
Positive Impact ◽  
Public Investment ◽  
Unit Roots ◽  
Private Investment ◽  
Annual Data ◽  
Public And Private ◽  
Fixed Capital Formation ◽  
Private And Public ◽  
The Relationship

This paper uses the Co-integrating VAR’s [Johansen (1988); Ericsson, et al. (1998)] to examine the relationship between economic growth, public investment, and private investment in the presence of unit roots. Exogeneity is not implicitly assumed but explicitly tested for, and evidence of co-integration and feedback between public and private investment leads to a model in the form of a parsimonious VAR. The analysis is conducted using 37 years of annual data for Pakistan. The analysis suggests that public investment has a positive impact on private investment, and that economic growth drives both private and public investment as predicted by the accelerator-based models.

scholarly journals Double elevation: Autonomous weapons and the search for an irreducible law of war

2020 ◽  
Vol 33 (2) ◽  
pp. 289-312
Author(s):  
Ioannis Kalpouzos
Keyword(s):  
Artificial Intelligence ◽  
Private Investment ◽  
Central Feature ◽  
Military Technology ◽  
Public And Private ◽  
Law Of War ◽  
Autonomous Weapons ◽  
The Relationship ◽  
Meaningful Role

AbstractWhat should be the role of law in response to the spread of artificial intelligence in war? Fuelled by both public and private investment, military technology is accelerating towards increasingly autonomous weapons, as well as the merging of humans and machines. Contrary to much of the contemporary debate, this is not a paradigm change; it is the intensification of a central feature in the relationship between technology and war: double elevation, above one’s enemy and above oneself. Elevation above one’s enemy aspires to spatial, moral, and civilizational distance. Elevation above oneself reflects a belief in rational improvement that sees humanity as the cause of inhumanity and de-humanization as our best chance for humanization. The distance of double elevation is served by the mechanization of judgement. To the extent that judgement is seen as reducible to algorithm, law becomes the handmaiden of mechanization. In response, neither a focus on questions of compatibility nor a call for a ‘ban on killer robots’ help in articulating a meaningful role for law. Instead, I argue that we should turn to a long-standing philosophical critique of artificial intelligence, which highlights not the threat of omniscience, but that of impoverished intelligence. Therefore, if there is to be a meaningful role for law in resisting double elevation, it should be law encompassing subjectivity, emotion and imagination, law irreducible to algorithm, a law of war that appreciates situated judgement in the wielding of violence for the collective.

Public and Private Spending: Some Australian Evidence

1995 ◽  
Vol 6 (1) ◽  
pp. 41-51
Author(s):  
Mehdi S. Monadjemi
Keyword(s):  
Public Investment ◽  
Government Expenditure ◽  
Private Investment ◽  
Crowding Out ◽  
Empirical Relationships ◽  
Public And Private ◽  
Investment Expenditure ◽  
Private Expenditure ◽  
Private Spending ◽  
The Relationship

This paper examines empirical relationships between government expenditure and private spending in Australia, to see whether government expenditure reduces, or crowds out, private expenditure or encourages it. Particular attention is paid to the effect on private investment expenditure and the possibility of a change occuring in the relationship between public and private is examined. Regression analysis found no significant evidence of crowding out. Public investment was found to compliment private investment in the period before 1974, but not in the period since then.

scholarly journals Fiscal Rule in Africa

2020 ◽  
Vol 3 (1) ◽  
pp. 112-120
Author(s):  
Olatunji Abdul Shobande
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Positive Impact ◽  
Private Investment ◽  
Gdp Growth ◽  
Method Of Moment ◽  
African Countries ◽  
Public And Private ◽  
Public Investments ◽  
Private And Public

AbstractFiscal policy has recently been encouraged to increase competition, monitor Africa’s debt to GDP and improve its economic growth. Importantly, the present fiscal situation in most African countries will seem to have significant consequences for both public and private investments. This paper examines whether fiscal policy and investment matters for GDP growth in a panel of forty-eight (48) African countries for the period 1970-2017. The empirical evidence explored is based on the Fixed Effect (FE) and System Generalised Method of Moment (GMM) estimators. The results suggest that public and private investment among selected African countries has a positive impact on GDP growth. The findings further indicate that fiscal policies must play a more prominent role in sustaining potential private and public investments, especially as debt servicing among the African’ countries examined may have serious shortcomings on sustainable economic growth

scholarly journals Growth and Volatility Reconsidered: Reconciling Opposite Views

2013 ◽  
Vol 2013 ◽  
pp. 1-17
Author(s):  
L. Bisio ◽  
L. Ventura
Keyword(s):  
Empirical Studies ◽  
Government Expenditure ◽  
Private Investment ◽  
Policy Implications ◽  
Output Volatility ◽  
Strong Negative Correlation ◽  
Benchmark Analysis ◽  
Consumption Volatility ◽  
The Business Cycle ◽  
The Relationship

Many contributions in the recent literature have investigated over the relationship between GDP growth and its volatility without getting a clear and unambiguous answer. Besides reassessing the well-known effect of output volatility on growth as benchmark analysis, this study aims at looking into the “black box” of the business cycle volatility by disentangling the impacts of volatility of GDP major components—that is, private consumption, private investment and government expenditure—on growth, simultaneously considered. Our empirical analysis unveils a remarkably robust and strong negative correlation of consumption volatility with mean growth and a positive one with volatility of investment and of public expenditure. If these findings shed some additional light on the (still controversial) relationship between economic fluctuations and growth, they will also make it possible to compare the relative impact of each component, with possibly relevant policy implications. Importantly, this might reconcile opposite views about the issue that different empirical results might originate from the relative importance across empirical studies of the various components of volatility.

Sign in / Sign up

Export Citation Format

Share Document