scholarly journals 3. Public Investment in Germany

2020 ◽  
pp. 49-62
Author(s):  
Sebastian Dullien ◽  
Ekaterina Jürgens ◽  
Sebastian Watzka
Keyword(s):  
Public Sector ◽  
Demographic Change ◽  
Capital Stock ◽  
Positive Impact ◽  
Public Investment ◽  
German Economy ◽  
Public Capital ◽  
Potential Growth ◽  
The Public ◽  
Severe Deterioration

Chapter 3, by Sebastian Dullien, Ekaterina Jürgens and Sebastian Watzka, reports on German debates about public investment. As with France, underinvestment by the public sector over the past two decades has led to a severe deterioration of the public capital stock. Moreover, demographic change, decarbonization and digitalization pose significant challenges for the German economy which imply additional public investment needs. A detailed sector-by-sector overview of investment requirements concludes that investment requirements add up to at least €450 bn over the next decade. Through a macroeconomic simulation, it is shown that a debt-financed increase of public expenditure of this magnitude would be compatible with keeping the debt-to-GDP-ratio below 60% and would have a positive impact on potential growth.

scholarly journals Gabon

2020 ◽  
Vol 20 (188) ◽  
Author(s):  
Keyword(s):  
Sustainable Development ◽  
Capital Stock ◽  
Public Investment ◽  
Strategic Plan ◽  
Private Investment ◽  
Public Capital ◽  
Emerging Economy ◽  
Potential Growth ◽  
Investment Expenditure

The development of infrastructure is one of the pillars of the Emerging Gabon Strategic Plan (PSGE). Implemented as of 2012, the PSGE has been establishing priority strategic guidelines to transform Gabon into an emerging economy by 2025. Its primary aims are to ensure and expedite the country’s sustainable development and growth by focusing on potential growth sectors. Public investment grew continuously from 2009 to 2013, when it peaked at 15.2 percent of GDP; it averaged 5.7 percent growth from 1990 to 2018. At the same time, private investment declined, as did growth and public capital stock. These outcomes indicate that public investment in Gabon does not drive growth and that investment expenditure does not automatically translate into actual accumulation of assets, which raises questions about the efficiency of those outlays.

Evaluation of the impact of public investment programs on social and economic performance of territories

2019 ◽  
pp. 109-123
Author(s):  
I. E. Limonov ◽  
M. V. Nesena
Keyword(s):  
Bayesian Modeling ◽  
Positive Impact ◽  
Public Investment ◽  
Difference In Differences ◽  
The Public ◽  
Export Activity ◽  
Regional Investment ◽  
The Difference ◽  
The Impact ◽  
Development Institution

The purpose of this study is to evaluate the impact of public investment programs on the socio-economic development of territories. As a case, the federal target programs for the development of regions and investment programs of the financial development institution — Vnesheconombank, designed to solve the problems of regional development are considered. The impact of the public interventions were evaluated by the “difference in differences” method using Bayesian modeling. The results of the evaluation suggest the positive impact of federal target programs on the total factor productivity of regions and on innovation; and that regional investment programs of Vnesheconombank are improving the export activity. All of the investments considered are likely to have contributed to the reduction of unemployment, but their implementation has been accompanied by an increase in social inequality.

scholarly journals REVISITING THE OPTIMAL STATIONARY PUBLIC INVESTMENT POLICY IN ENDOGENOUS GROWTH ECONOMIES

2008 ◽  
Vol 12 (2) ◽  
pp. 172-194 ◽  
Author(s):  
GUSTAVO A. MARRERO
Keyword(s):  
Endogenous Growth ◽  
Public Investment ◽  
Public Capital ◽  
Optimal Choice ◽  
Public Infrastructure ◽  
The Public ◽  
Developed Economies ◽  
Elasticity Of Intertemporal Substitution ◽  
Output Ratio ◽  
Public Investment Policy

One part of the literature on endogenous growth concerns models where public infrastructure affects the private production process. An unsolved puzzle in this literature concerns observed public investment-to-output ratios for developed economies, which tend to fall short of theoretical model-based optimal ratios. We reexamine the optimal choice of public investment in a more general framework. This setting allows for long-lasting capital stocks, a lower depreciation rate for public capital than for private capital, an elasticity of intertemporal substitution that differs from unity, and the need to finance a nontrivial share of public services in output. Given other fundamentals in the economy, we show that the optimal public investment-to-output ratio is smaller for low-growth economies, for economies populated by consumers with low preferences for substituting consumption intertemporally, and when public capital is durable. For a calibrated economy, we show that a combination of these factors solves the public investment puzzle.

scholarly journals Does Farmland Size Affect the Collective Action in Rural Areas? An Empirical Study on the Public Irrigation System in China

2021 ◽  
Vol 292 ◽  
pp. 01028
Author(s):  
Liangzhen Zang ◽  
Yiqing Su
Keyword(s):  
Public Sector ◽  
Collective Action ◽  
Rural Areas ◽  
Positive Impact ◽  
Irrigation System ◽  
The Public ◽  
Land Circulation ◽  
Per Capita ◽  
Agricultural Business ◽  
The Impact

Since smallholders accounted for a high proportion of 98.1% among the 207 million agricultural business households across China, it is particularly important to study the impact of farmland size on the provision of public goods attached to the public sector industries from the perspective of the irrigation collective action in rural areas. Based on the survey data of 283 villages in China, this paper finds that the farmland size has a positive impact on irrigation collective action, although the average of per capita farmland area is only 0.214 hectares in each household of China. Therefore, it is necessary to promote the farmland scale operation by land circulation, so as to improve the ability of collective action and the development of public sector industries in rural areas of China.

scholarly journals Is the Private Sector more Productive than the Public Sector?

1991 ◽  
Vol 30 (4II) ◽  
pp. 721-729
Author(s):  
Khwaja Sarmad
Keyword(s):  
Developing Countries ◽  
Public Sector ◽  
Private Sector ◽  
Public Investment ◽  
Empirical Work ◽  
Empirical Support ◽  
Private Investment ◽  
Total Production ◽  
The Public ◽  
The Government

In developing countries the rapid growth of the public sector during the past few decades was viewed as an important means for accelerating the pace of economic growth. In most developing countries the public sector now accounts for a prominent share of total production and investment. But the contribution of the public sector to growth has been much below expectations. In many cases public enterprises require large subsidies from the government and impose a significant fiscal burden on the economy, which leads to the notion that the private sector is much more productive than the public sector. However, little empirical work has been done in this field so that the proposals that emphasize the private sector vis-a-vis the public sector rest largely on theoretical considerations. Recent work by Khan and Reinhart (1990) is an important exception. Using cross-section data for the seventies of 24 developing countries they show that the arguments favouring the private sector in adjustment programmes have empirical support. Khan and Reinhart estimate a growth model in which the effect of private and public investment on growth is separated. A comparison of the marginal productivities of the two types of investment allows them to conclude that "all in all, there does seem to be some merit in the key role assigned to private investment in the development process by supporters of market -based strategies". [Khan and Reinhart (1990), p. 25.]

scholarly journals Foreign Aid and the Public Sector: A Model of Fiscal Behaviour in Pakistan

1997 ◽  
Vol 36 (2) ◽  
pp. 115-129 ◽  
Author(s):  
Zafar Iqbal
Keyword(s):  
Public Sector ◽  
Foreign Capital ◽  
Positive Impact ◽  
Large Fraction ◽  
Capital Inflows ◽  
Foreign Assistance ◽  
The Public ◽  
Foreign Capital Inflows ◽  
The Government ◽  
The Impact

The main aim of this paper is to demonstrate the impact of foreign capital inflows on government’s fiscal behaviour in Pakistan. Government’s fiscal response is measured in terms of social, non-development, and development expenditures as well as revenues. This paper specifies and estimates a fiscal behaviour model for the period 1976–95. The threestage least squares results suggest that foreign capital flows into the public sector have strong positive impact on social and non-development expenditures and, in contrast to what the government and donor agencies believe, have little effect on development spending. In other words, proceeds from foreign loans and aid are largely consumed rather than invested productively. The results also reveal the strong substitutable interdependence between social and non-development expenditures. Furthermore, the finding clearly demonstrates that foreign assistance causes a strong shift of public domestic resources from development projects to non-development activities. In addition to the above, the results show that a large fraction of government revenues is used to finance social and non-development expenditures. The results also demonstrate that foreign assistance enhances taxation efforts of the Government of Pakistan.

scholarly journals Summary, Initial Observations, and Getting to a Tentative Theory of Public Investment Behavior

2019 ◽  
pp. 311-336
Author(s):  
Arwiphawee Srithongrung ◽  
Juita-Elena (Wie) Yusuf
Keyword(s):  
Public Sector ◽  
Management Practices ◽  
Public Investment ◽  
Public Capital ◽  
Investment Behavior ◽  
Capital Management ◽  
Political Economic ◽  
Budgeting Process

This chapter evaluates the 12 countries' capital management practices according to the systematic public capital management and budgeting process described in Chapter 1. The chapter characterizes and classifies the management practices of the twelve countries based on the authors' evaluation using the case study descriptions. The authors offer some initial observations based on comparisons across the case study countries and analysis of relationships between capital management and budgeting practices and political, economic, and public sector variables. The chapter proposes a tentative theory of public investment behavior and offers five propositions regarding the factors driving different practices across the case study countries and the consequences of a systematic capital management and budgeting process.

Sign in / Sign up

Export Citation Format

Share Document