Public and Private Investment and Economic Growth in Namibia

Abstract This paper provides new evidence to contribute to the current debate on the relative impact of public and private investment on economic growth and the crowding effect between the two components of investment in South Africa. Using annual data from 1970 to 2017, the study applies the recently developed Autoregressive Distributed Lag (ARDL)-bounds testing approach to cointegration. The study finds that private investment has a positive impact on economic growth both in the long run and short run, while public investment has a negative effect on economic growth in the long run. Further, in the long run, gross public investment is found to crowd out private investment, while its infrastructural component is found to crowd in private investment. The results of the study also reveal that both gross public investment and non-infrastructural public investment crowd out private investment in the short run. Overall, the study finds private investment to be more important than public investment in the South African economic growth process and that the importance of infrastructural public investment in stimulating private investment in the long run cannot be over-emphasized.

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Theoretical analysis and relationship of government and private investment on economic growth and employment absorption

Global Journal of Engineering and Technology Advances ◽

10.30574/gjeta.2021.9.3.0167 ◽

2021 ◽

Vol 9 (3) ◽

pp. 059-067

Author(s):

M. Ramadhan

Keyword(s):

Economic Growth ◽

Theoretical Analysis ◽

Natural Resources ◽

Private Investment ◽

Government Policies ◽

Government Investment ◽

Public And Private ◽

Depth Analysis ◽

Relationship Of ◽

Poverty Levels

One of the goals to be achieved in developing public and private investment is to encourage economic growth and employment. Positive economic growth is needed because it means that it has driven faster economic growth and increased the absorption of Employment. This study aims to obtain an analysis of the theoretical relationship between government investment and private investment on economic growth and employment, especially in South Kalimantan Province as the object of research. South Kalimantan Province is one of the regions in Indonesia which has a large potential for natural resources. The method used in this research is to use Path Analysis and analysis of theoretical findings based on in-depth analysis of various literature studies and observations which are expected to prove that government investment and private investment affect employment and economic growth which in turn can affect poverty levels. . The results of the study are expected to obtain important theoretical findings that can contribute to the formulation of government policies.

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Economic growth, public, and private investment returns in 17 OECD economies

Portuguese Economic Journal ◽

10.1007/s10258-018-0143-7 ◽

2018 ◽

Vol 18 (1) ◽

pp. 47-65 ◽

Cited By ~ 4

Author(s):

António Afonso ◽

Miguel St. Aubyn

Keyword(s):

Economic Growth ◽

Private Investment ◽

Public And Private ◽

Investment Returns

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Public and Private Infrastructure Investment and Economic Growth in Pakistan: An Aggregate and Disaggregate Analysis

Sustainability ◽

10.3390/su11123359 ◽

2019 ◽

Vol 11 (12) ◽

pp. 3359 ◽

Cited By ~ 5

Author(s):

Javid

Keyword(s):

Economic Growth ◽

Private Investment ◽

Ordinary Least Squares ◽

Policy Implications ◽

Infrastructure Investment ◽

Public Infrastructure ◽

Reverse Causality ◽

Public And Private ◽

Infrastructure Investments ◽

The Impact

This study investigates the relationship between infrastructure investment and economic growth at the aggregate and sectoral levels, namely, the industrial, agriculture, and services sectors for Pakistan over the period from 1972 to 2015. In contrast to earlier literature, we make a comparative analysis of the different composition of infrastructure investments, including public versus private investment and infrastructure investment in sub-sectors such as in power, roads, and telecommunication sectors. The long-run relationship is estimated using fully modified ordinary least squares (FMOLS) to address the problem of reverse causality. The main conclusion of this study is that both public and private infrastructure investments have positive but different effects on economic growth. In other words, the marginal productivities of private and public infrastructure investments differ across the different sectors of the economy. In most of the cases, public infrastructure investment has a larger impact on economic growth than private infrastructure investment. Two important policy implications emerge from this study, as follows: (1) The different elasticity estimates can be used by policy makers to quantify the impact of policies targeted at the specific sector and (2) the government should develop an enabled policy environment to attract private investment, with the consideration of structural characteristics of the various sectors. The involvement of the private sector in the provision of infrastructure would help to control the tight budgetary situation.

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

Journal of Infrastructure Development ◽

10.1177/0974930620961477 ◽

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.

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Economic Growth, Public and Private Investment: A Comparative Study of China and the United States

Sustainability ◽

10.3390/su12062243 ◽

2020 ◽

Vol 12 (6) ◽

pp. 2243

Author(s):

Ibrahim Ari ◽

Muammer Koc

Keyword(s):

Economic Growth ◽

Gross Domestic Product ◽

Private Investment ◽

The United States ◽

Domestic Product ◽

Public And Private ◽

Macroeconomic Factors ◽

Causal Relations ◽

Sustainable Economic Growth ◽

The U.S

Public and private investments play a central role in production functions by providing the required capital for development. There are many studies in the literature investigating the linear macroeconomic relations based on public and private investment in cross-country and country-specific analyses by focusing on various perspectives and methodologies. However, there is a gap in the literature in exploring nonlinear causal relations among public-private investment and economic growth, particularly in the U.S. and China, in order to comparatively discuss policy implementations and potential implications. To narrow the gap, this study investigates nonlinear causal relationships between public-private investment and gross domestic product in the U.S. and China, which are the largest economies comprising about 40 percent of the global gross domestic product (GDP) in 2018. These countries show a similar pattern in economic growth and implementing sustainable development goals, although they follow considerably different socio-economic regimes and fall into different development levels (i.e., developed and developing countries). Therefore, there should be a common underlying mechanism in macroeconomic factors that fosters economic development. In this regard, the motivation behind the study is to reveal a common, but hidden, behavior of the nonlinear causal relations of given macroeconomic factors in these countries to make recommendations about sustainable economic growth for policymakers. To this end, there are three main contributions of the paper. First, the research finds nonlinear dependencies in the related time series between 1960–2015, thereby nonlinear causality tests are performed to reach more reliable information than the linear causality. Second, the study formulates a feedback loop between public and private investment through economic growth, which indicates that public and private investment should stimulate each other directly or indirectly (i.e., through the GDP). Third, the direction of the causality does not affect sustainable economic growth as long as it exists directly or indirectly.

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Econometric Study of the Impact of Public and Private Investment on Economic Growth in Algeria during the Period (1970-2017)

Asian Journal of Economics Business and Accounting ◽

10.9734/ajeba/2020/v18i230282 ◽

2020 ◽

pp. 58-69

Author(s):

Hadjoudj Abdallah ◽

TchiKo Faouzi

Keyword(s):

Economic Growth ◽

Error Correction ◽

Correction Term ◽

Public Investment ◽

Unit Root Test ◽

Private Investment ◽

Bounds Testing ◽

Public And Private ◽

Percent Increase ◽

The Impact

This article examines the impact of public and private investment on economic growth in Algeria covering the period from 1970 to 2017. By applying the Auto-Regressive Distributed Lag model (ARDL)-(bounds testing approach). The key findings of the study concluded that there is a long-run relationship between public and private investment and economic growth in Algeria. The result of the Augmented Dickey Fuller unit root test (ADF) showed that the variables are stationary at the level and at the first difference. In addition, the results of the cointegration test indicated that the variables are cointegrated and therefore have the ability to move together over the long term. The parsimonious error correction mechanism showed that private investment is significantly related to economic growth. The result indicated that a 1 percent increase in the present value of private investment, on average, stimulates economic growth by 0.09 percent. Similarly, the value of public investment is positively related to economic growth. On average, a 1 percent increase in public investment stimulates growth in Algeria by 0.05 percent. the results of short-run dynamics reveal that, the error correction term (ECM) is negative and significant (-0.54), which means that 54% of the disequilibrium will be adjusted annually.

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Infrastructural Investments and Economic Growth: Evidence from Pakistan

Journal of Business and Social Review in Emerging Economies ◽

10.26710/jbsee.v7i3.1845 ◽

2021 ◽

Vol 7 (3) ◽

Author(s):

Muhammad Ayub ◽

Rabia Rasheed ◽

Rashid Ahmad ◽

Furrukh Bashir

Keyword(s):

Economic Growth ◽

Time Series Data ◽

Private Investment ◽

Series Data ◽

Water Projects ◽

Public And Private ◽

The Public ◽

Long Run ◽

Short Run ◽

Adf Test

Purpose: The goal of this study is to make an attempt to find out the relationships between infrastructural investments and economic growth. Design/Methodology/Approach: The study employs time series data over the years from 1972 to 2020. To observe the long-run and short-run impact of infrastructural investments on economic growth, an ARDL modeling approach to co- integration is used that is most suitable technique over some other techniques of integration after inspecting the stationary level of data via ADF test. Findings: The findings of the study indicate that Investments on Railways, Roads, Gas Projects, Telecommunication, Water Projects and Power Projects appear as efficient factors for enhancing economic growth of Pakistan in the long run. Implications/Originality/Value: It is suggested that government should increase the public and private investment for development of Railways, Roads, Telecommunication and Water projects in Pakistan.

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Ecological Footprint, Public-Private Partnership Investment in Energy and Financial Development in Brazil: A Gradual Shift Causality Approach

10.21203/rs.3.rs-328980/v1 ◽

2021 ◽

Author(s):

Gbenga Daniel Akinsola ◽

Abraham Ayobamiji Awosusi ◽

Dervis Kirikkaleli ◽

Sukru Umarbeyli ◽

Ibrahim Adeshola ◽

...

Keyword(s):

Economic Growth ◽

Renewable Energy ◽

Financial Development ◽

Ecological Footprint ◽

Private Investment ◽

Low Carbon ◽

Causality Test ◽

Public And Private ◽

Gradual Shift ◽

The Impact

Abstract The present study aims to close this gap in the literature by exploring the effect of public-private partnerships in energy and financial development on Brazil’s ecological footprint by considering the impact of renewable energy and economic growth using data spanning from 1983 to 2017. The study utilized several techniques such as ARDL, FMOLS, DOLS, and CCR to examine the relationship between ecological footprint and the determinants, while the Gradual shift causality test was utilized to capture the causal linkage between the series in the presence of structural break. The outcome of the Maki Cointegration test revealed evidence of a long-run association among the variables of interest. Furthermore, the results of the ARDL, FMOLS, DOLS, and CCR tests revealed that economic growth and public and private investment in energy increase environmental degradation while both renewable energy and financial development mitigates it. Moreover, the Gradual shift causality test revealed a bidirectional causal linkage between ecological footprint and economic growth. The present study recommends establishing a forum that will foster public and private partnerships to enhance communication, which will create collaboration for new initiatives for green technological innovations. Additionally, the financial market can be assisted by the government by formulating a framework that would promote low carbon technology development.

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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

The Pakistan Development Review ◽

10.30541/v41i3pp.255-276 ◽

2002 ◽

Vol 41 (3) ◽

pp. 255-276 ◽

Cited By ~ 4

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.

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