scholarly journals Government public infrastructure investment and economic performance in Spain (1980-2016)

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jose Perez-Montiel ◽  
Carles Manera
Keyword(s):  
Public Investment ◽  
Infrastructure Investment ◽  
Annual Data ◽  
Public Infrastructure ◽  
Cross Sectional ◽  
Content Type ◽  
Autonomous Communities ◽  
Vector Autoregressive ◽  
Acyclic Graphs ◽  
Multiplier Effects

Purpose The authors estimate the multiplier effect of government public infrastructure investment in Spain. This paper aims to use annual data of the 17 Spanish autonomous communities for the 1980–2016 period. Design/methodology/approach The authors use dynamic acyclic graphs and the heterogeneous panel structural vector autoregressive (P-SVAR) method of Pedroni (2013). This method is robust to cross-sectional heterogeneity and dependence, which are present in the data. Findings The findings suggest that an increase in the level of government public infrastructure investment generates a positive and persistent effect on the level of output. Five years after the fiscal expansion, the multiplier effects of government public infrastructure investment reach values above one. This confirms that government public infrastructure investment expansions have Keynesian effects. The authors also find that the multiplier effects differ between autonomous communities with above-average and below-average GDP per capita. Originality/value To the best of the authors’ knowledge, no research uses dynamic acyclic graphs and heterogeneous P-SVAR techniques to estimate fiscal multipliers of government public investment in Spain by using subnational data.

Does public investment crowd-out private investment in India

2017 ◽  
Vol 9 (1) ◽  
pp. 50-69 ◽  
Author(s):  
Shanmugam Muthu
Keyword(s):  
Public Investment ◽  
Private Investment ◽  
Infrastructure Investment ◽  
Public Infrastructure ◽  
Public And Private ◽  
Content Type ◽  
Macroeconomic Uncertainty ◽  
Long Run ◽  
Short Run

Purpose The purpose of this paper is to examine the crowding-in or crowding-out relationship between public and private investment in India. Design/methodology/approach The autoregressive distributed lag (ARDL) bounds testing approach is used to estimate the long run relationship between public and private investment using annual data from 1971-1972 to 2009-2010. Findings Based on the empirical findings, it is observed that aggregate public investment has a positive effect on private investment both in the long run and the short run. In contrast to the findings of previous studies, no significant impact of public infrastructure investment on private investments is found in the long run, while non-infrastructure investment has a positive impact on private investment in the short run. Among the various categories of infrastructure sector, a positive and significant impact in the case of electricity, gas and water supply is observed. Similarly, the result indicates that public investment in machinery and equipment and construction have substantially influenced the private sector machinery and equipment in the long run and the short run. In the case of the role of macroeconomic uncertainty, the results find a negative and significant impact on private investment and the impact is higher in the short run than in the long run. Originality/value The present study extends the literature in three important ways: First, the study attempts to capture heterogeneity of public investment as well as disaggregate effects of two different categories of public infrastructure on private investment. The extent to which two different types of public assets impact the private investment in machinery and equipment investment is also examined. Second, ARDL model is used to examine the long-run relationship between public and private investment. Third, the study incorporates macroeconomic uncertainty into the empirical analysis to examine the role of macroeconomic volatility in determining private investment decision.

Public infrastructure investment and fiscal sustainability in Latin America: incompatible goals?

2014 ◽  
Vol 41 (1) ◽  
pp. 29-50 ◽  
Author(s):  
Luis Carranza ◽  
Christian Daude ◽  
Angel Melguizo
Keyword(s):  
Developing Countries ◽  
Latin America ◽  
Latin American ◽  
Public Investment ◽  
Fiscal Rules ◽  
Infrastructure Investment ◽  
Fiscal Consolidation ◽  
Public Infrastructure ◽  
Content Type ◽  
Fiscal Space

Purpose – This paper aims to understand the relationship in developing countries between fiscal consolidation and public investment – a flexible part of the budget that is easier to cut during consolidation effort, but with potentially negative growth effects. Analyzing in detail the case of Peru, the paper explores alternative fiscal rules and frameworks that might help create fiscal space for infrastructure investment. Design/methodology/approach – The paper analyses trends in public and total infrastructure investment in six large Latin American economies, in the light of fiscal developments since the early 1980s. In particular, the paper explores the association between fiscal consolidations (improvements in the structural fiscal balance) and public infrastructure investment rates. In the second part, the paper analyzes recent changes in the fiscal framework of Peru and shows how they were conductive in creating additional fiscal space. Findings – The authors argue that post-crisis fiscal frameworks, notably fiscal rules that are increasingly popular in the region, should not only consolidate the recent progress towards debt sustainability, but also create the fiscal space to close these infrastructure gaps. These points are illustrated in a detailed account of recent developments in the fiscal framework and public investment in the Peruvian case. Originality/value – The paper contributes new evidence to the literature on fiscal consolidation and the composition of government expenditures. While the literature based on evidence from the 1990s has argued that fiscal consolidation plans in Latin America have almost always led to a significant reduction in public infrastructure investment, the paper finds less clear cut evidence when extending the analysis backwards (1980s) and forwards (2000s). The example of the case of Peru is used to explore fiscal institutions and rules that might be useful for other developing countries that face important infrastructure gaps.

scholarly journals On the Effects of Infrastructure Investment on Economic Performance in Ontario

2018 ◽  
Vol 2 (2) ◽  
pp. 1
Author(s):  
Alfredo Marvao Pereira ◽  
Rui Manuel Pereira
Keyword(s):  
Economic Performance ◽  
Public Investment ◽  
Methodological Approach ◽  
Private Investment ◽  
Infrastructure Investment ◽  
Public Infrastructure ◽  
Transit Systems ◽  
Vector Autoregressive ◽  
Dynamic Time ◽  
The Impact

Over the past decade, Ontario has seen a renewal in efforts to stimulate economic growth by investing in infrastructures. In this paper, we analyze the impact of public infrastructure investment on economic performance in this province. We use a multivariate dynamic time series methodological approach, based on the use of vector autoregressive models to estimate the elasticities and marginal products of six different types of public infrastructure assets on private investment, employment and output. We find that all types of public investment crowd in private investment while investment in highways, roads, and bridges crowds out employment. We also find that all types of public investment, with the exception of highways, roads and bridges, have a positive effect on output. The relatively large range of results estimated for the impact of each of the different public infrastructure types suggests that a targeted approach to the design of infrastructure investment policy is required. Infrastructure investment in transit systems and health facilities display the highest returns for output and the largest effects on employment and labor productivity. In terms of the nature of the empirical results presented here it would be important to highlight the fact that investments in health infrastructures as well as investments in education infrastructures are of great relevance. This is a pattern consistent with the mounting international evidence on the importance of human capital for long term economic performance.

Peer effects in the valuation and practices of food safety: findings from the study of dairy consumers in India

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Raj Chandra ◽  
Abdul Munasib ◽  
Devesh Roy ◽  
Vinay K. Sonkar
Keyword(s):  
Social Networks ◽  
Food Safety ◽  
Peer Effects ◽  
Cross Sectional Study ◽  
Cross Sectional ◽  
Content Type ◽  
Information Campaigns ◽  
Social Multiplier ◽  
Multiplier Effects ◽  
The Right

Purpose Information is often available to consumers through their social networks. Focusing on dairy consumers in India, this paper aims to present evidence of peer effects in consumers’ attitudes towards various food safety attributes and food safety practices. Design/methodology/approach Unobserved individual heterogeneities are crucial confounders in the identification of social (endogenous) effects. The identification is based on exploiting within-consumer variation across different aspects of attitude (or practices) related to food safety. Findings This paper uses a novel identification strategy that allows for average effects across attributes and practices to be estimated. Using the strategy, though this paper cannot estimate endogenous effects in each attribute or practice, this paper is able to identify such effects averaged over attributes or practices. Research limitations/implications Cross-sectional study, caste affiliation is not defined at the right level of granularity. Practical implications The results suggest that information campaigns aimed at creating awareness about food safety can have social multiplier effects, and this also translates into changes in the practices followed to mitigate food safety risks. Social implications In health-related awareness and practices, there are well-established cases of multiplier effects. The most significant example of this is the Pulse Polio campaign in India, where an awareness drives through social multiplier effects had such a significant impact that in 2012 India was declared polio-free. Perhaps, a similar campaign in matters related to food safety could be very fruitful. Originality/value The methodology and the issue are unique. Little exists in assessing social networks in the context of food safety.

Long-run relationship between investment and maintenance in local governments

Facilities ◽  
2016 ◽  
Vol 34 (11/12) ◽  
pp. 703-722 ◽  
Author(s):  
Arnt O. Hopland
Keyword(s):  
Local Governments ◽  
Reduced Form ◽  
Public Infrastructure ◽  
Data Set ◽  
Content Type ◽  
Vector Autoregressive ◽  
The Past ◽  
Long Run ◽  
The Relationship ◽  
New Infrastructure

Purpose The purpose of the paper is to analyze the relationship between maintenance of existent and investment in new infrastructure in Norwegian local governments. Design/methodology/approach A reduced form vector autoregressive system is estimated using a 29-year-long panel data set for the Norwegian local governments. Findings The data reveal that increased investment in new infrastructure sparks little, if any, increase in maintenance. The results also indicate that increased maintenance expenditures spark new investments. Because more investments mean more infrastructure and adequate maintenance should give that investments are not caused by maintenance, the results suggest that the local governments have not optimized their maintenance scheduling in this period. Originality/value Even though maintenance and investment are large expenditures that both serve as inputs to the stock of infrastructure, little is known about the relationship between the two. The findings in this paper suggests that Norwegian local governments have not planned their maintenance and investments well in the past, and this can be part of the explanation as to why local public infrastructure in Norway is presently in poor condition.

Infrastructure spending may pick up in Central Europe

2016 ◽  
Keyword(s):  
Central Europe ◽  
Growth Rates ◽  
Financial Services ◽  
Public Investment ◽  
Private Investment ◽  
Infrastructure Investment ◽  
Economic Forecast ◽  
Infrastructure Projects ◽  
Content Type ◽  
Political Landscapes

Subject The expected rebound from declining infrastructure investment in Central Europe in 2016-17. Significance In its latest Economic Forecast, the European Commission expects a short-lived decline in public investment in three Central European (CE) countries. This is due to a 'one-off effect', as absorption rates for EU structural and cohesion funds dip across the region, with the closure of the 2007-13 programme period. This will weigh on headline GDP, with the Commission forecasting relatively low 2016 growth rates of 2.1% for Hungary, 2.3% for the Czech Republic and 3.5% for Poland. Impacts Solid growth rates in CE will attract private investment to infrastructure projects, particularly once GDP expands faster in 2017. Infrastructure investment will focus on such traditional sectors as transport and industry rather than financial services in 2016-17. Low borrowing costs and private companies' strong demand for short- and long-term loans will facilitate an upturn in projects in 2017. Given the diverse fiscal and political landscapes across CE, divergence in deals and mixed funding schemes are expected after 2016. CE governments may introduce lending schemes designed to shield new infrastructure projects from financial volatility.

Vietnam eyes PPPs to plug infrastructure gap

2015 ◽  
Keyword(s):  
Public Investment ◽  
Infrastructure Investment ◽  
Private Capital ◽  
Content Type ◽  
Infrastructural Development ◽  
Eurasian Economic Union ◽  
New Public ◽  
The Government ◽  
To Come ◽  
Asean Economic Community

Subject The emerging infrastructure investment framework in Vietnam. Significance Vietnamese infrastructure lags some regional competitors; Hanoi estimates that investing 500 billion dollars could resolve this, but needs 300 billion of this to come from public-private partnerships (PPP). Following problems with Vietnam's PPP regulatory framework, a new framework was introduced in April and a new public investment law in January, among other measures seeking to attract private capital into national infrastructure. Such measures are timely: the ASEAN Economic Community is coming in late 2015, while Vietnam signed a free trade deal on May 29 with the Eurasian Economic Union; capitalising on both requires Vietnamese infrastructural development. Impacts The government may need to delay some projects while private capital comes online. As government and industry adapt to the new infrastructure investment framework, updates to planning instructions may be needed. A concerted anti-corruption campaign would support efficiency drives in infrastructural development, but progress will be slow.

Brazil infrastructure spending will face obstacles

2019 ◽  
Keyword(s):  
Daily Life ◽  
Public Investment ◽  
Infrastructure Investment ◽  
Foreign Investors ◽  
Content Type ◽  
Large Cities ◽  
Fiscal Constraints ◽  
Export Competitiveness

Significance Brazilian infrastructure requires urgent investment. Fiscal constraints are strengthening the government’s inclination towards privatisation and concession plans. As part of the Investment Partnerships Programme (PPI), auctions regarding operation and administration of airports, ports and railways in the country have attracted foreign investors and exceeded the government’s initial targets. Impacts Sluggish infrastructure investment will affect daily life in large cities and hinder long-term export competitiveness. Political turbulence may undermine foreign investors’ interest in Brazil. New rounds of infrastructure auctions will partially offset low public investment.

Impact of Public and Private Infrastructure Investment on Economic Growth: Evidence from India

2020 ◽  
Vol 12 (2) ◽  
pp. 119-138
Author(s):  
Nishija Unnikrishnan ◽  
Thomas Paul Kattookaran
Keyword(s):  
Economic Growth ◽  
Public Investment ◽  
Impulse Response Function ◽  
Decomposition Analysis ◽  
Private Investment ◽  
Infrastructure Investment ◽  
Public Infrastructure ◽  
Public And Private ◽  
Long Run ◽  
The Impact

Literature presents contradictory views regarding the impact of public and private investment on the economic growth of a country. India being a developing country, where the major share of investment is by public sector, the question which props up is what among public and private investment is contributing more towards the economic growth of the country. In this framework, the gross domestic product (GDP) can be fairly explained as a function of public infrastructure investment and private infrastructure investment. Johansen’s co-integration was used to test the long-run relationship between the variables over the period from 1961–1962 to 2016–2017. A vector error correction model (VECM) along with an impulse response function and variance decomposition analysis was done to measure the impact of public infrastructure investment and private infrastructure investment on the GDP. Based on the empirical evidence discussed earlier, it was evident that both public and private infrastructure investments have a significant impact on the economic growth of the nation. Findings which came up in this study correlate to majority findings of past literature that, when compared with public investment, it is private investment which is capable of giving a better impetus to economic growth.

Long-term effects of population growth on aggregate investment dynamics

2015 ◽  
Vol 6 (3) ◽  
pp. 225-250 ◽  
Author(s):  
Simplice A. Asongu
Keyword(s):  
Population Growth ◽  
Public Investment ◽  
Private Investment ◽  
Domestic Investment ◽  
Long Term Effects ◽  
Content Type ◽  
Vector Autoregressive ◽  
Long Run ◽  
Investment Dynamics

Purpose – The generation is witnessing the greatest demographic transition and Africa is at the heart of it. There is mounting concern over corresponding rising unemployment and depleting per capita income. The purpose of this paper is to examine the issues from a long-run perspective by assessing the relationships between population growth and a plethora of investment dynamics: public, private, foreign and domestic investments. Design/methodology/approach – Vector autoregressive models in the perspectives of vector error correction and short-run Granger causality are used. Findings – In the long-run population growth will: first, decrease foreign and public investments in Ivory Coast; second, increase public and private investments in Swaziland; three, deplete public investment but augment domestic investment in Zambia; fourth diminish private investment and improve domestic investment in the Congo Republic and Sudan, respectively. Practical implications – Mainstream positive linkage of population growth to investment growth in the long-term should be treated with extreme caution. Policy orientation should not be blanket, but contingent on country-specific trends and tailored differently across countries. The findings stress the need for the creation of a conducive investment climate (and ease of doing business) for private and foreign investments. Family planning and birth control policies could also be considered in countries with little future investment avenues. Originality/value – The objective of this study is to provide policy makers with some insights on how future investment opportunities could help manage rising population growth and corresponding unemployment.

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