scholarly journals The public-private investment nexus in India: Evidence from a policy simulation approach

2020 ◽  
Vol 65 (224) ◽  
pp. 101-128
Author(s):  
Sajad Bhat ◽  
Javed Bhat ◽  
Taufeeq Ajaz

This study investigates the influence of public investment on private investment in India, at both the aggregate and Sectoral levels and under two different modes of deficit financing - monetisation and commercial borrowing - in an eclectic macroeconometric modelling framework. Using Generalised Method of Moments (GMM), the two simulation exercises conducted in the study highlight the crowdingin effect of public investment on aggregate private investment, irrespective of the mode of financing. The favourable accelerator effect and the complementary effect are found to outweigh the deleterious interest effect in both simulation exercises. At the Sectoral level, public investment is found to most strongly and positively affect private investment in manufacturing, followed by agriculture, the service sector, and finally infrastructure. The impact of public investment on the other sectors included in the model accords well with theoretical expectations.

2021 ◽  
Vol 39 (8) ◽  
Author(s):  
Francis Peujio

A large and positive relationship is found to exist in the long-run between Public Investment Expenditures and Firm Investment which shows that public investment crowds in private investment using ARDL model at macroeconomic level on the Mexican service sector over the period 2000-2016. I also use the system-GMM PVAR to analyse the impact of microeconomic variables on firm investment. Exports have a strong and positive impact while Imports have a large and negative impact on firm investment. At the microeconomic level, taxes payments slightly obstruct firm investment. Using impulse response functions, I find that long-run macroeconomic policies are more important than short-run macroeconomic policies and that macroeconomic policies are more important than microeconomic policies for firm’s investment decisions.


2019 ◽  
pp. 109-123
Author(s):  
I. E. Limonov ◽  
M. V. Nesena

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.


Author(s):  
Alcides Huamaní Peralta

<p>Se pretende explicar y analizar las implicancias que ha tenido la inversión pública de los gobiernos locales y el gobierno regional en el Departamento de Puno sobre el desarrollo socioeconómico; en los últimos años<a href="file:///C:/Users/FORTUNATO/Desktop/aptos%20ria%2018n3/8-%20INVERSI%C3%92N%20P%C3%99BLICA%20alcides%20huamani%20peralta.doc#_msocom_1">]</a> , la gestión pública es cuestionado principalmente porque éstas no han mostrado mejoras significativas en el desarrollo socioeconómico a pesar del incremento de recursos. Se ha considerado información anual del 2007 al 2014, referida a gobiernos subnacionales; para el primer objetivo se ha realizado la caracterización de gobiernos locales y gobierno regional; para el segundo objetivo, se analiza las implicancias que tiene la inversión pública sobre el desarrollo socioeconómico, mediante un modelo econométrico. Se ha caracterizado a la gestión de los gobiernos locales y el gobierno regional, encontrando problemas en la ejecución de inversiones, como la falta de calidad en proyectos de inversión, hechos de corrupción, limitadas capacidades de autoridades y funcionarios, y problemas de transparencia y procesos participativos; se ha evidenciado que las inversiones públicas tienen efectos muy limitados o marginales sobre el desarrollo socioeconómico en nuestro departamento, esto se infiere de los resultados del modelo econométrico aplicado. Conforme a la evidencia empírica, los gobiernos subnacionales no han generado mejoras significativas en las condiciones de vida de la población y condiciones favorables para el sector privado.</p><p> </p><p> </p><p> </p><p><strong> </strong></p><p align="center"><strong>ABSTRACT.</strong></p><p><strong> </strong></p><p>We  try to explain and analyze the implications that had the public investment of local governments and the regional government in the Department of Puno about the socio-economic development; in recent years, was questioned mainly because they have not shown significant improvements in the socio-economic development despite the increase of resources. It has been considered annual information from 2007 to 2014, referring about sub-national governments; for the first objective it has been taken characterization of local government and regional government; for the second objective, it has been analized the implications that has the public investment on the socio-economic development, using an econometric model. It has been characterized the management local governments and regional government, finding problems in the execution of investments, such as the lack of quality in investment projects, acts of corruption, limited capacities of authorities and civil servants, and problems of transparency and participatory processes;  this shows that public investments have very limited or marginal effects on the socio-economic development in our department, this is the conclussion  from the results of the applied econometric model. According to the empiric evidence, sub-national governments have not generated significant improvements in population’s  living conditions and favourable conditions for the private sector.</p><p> </p><p> </p><p>Key words: public management, private investment, standard of living.<strong></strong></p><p> </p><p> </p><p> </p><p> </p>


2014 ◽  
Vol 59 (02) ◽  
pp. 1450012 ◽  
Author(s):  
JAGANNATH MALLICK

This paper examines the club-convergence and conditional convergence of economic growth of the major 15 states in India over the periods from 1993–1994 to 2004–2005 by using dynamic fixed effect growth models. The result finds that there is club-convergence within the middle income states. There is also evidence of the convergence of per capita income among Indian states by conditioning private investment and public investment along with other factors of economic growth. This paper is innovative in separating the significance of private investment from the public investment in the long-run dynamics of income in Indian states. This paper suggests that regional disparity in income can be reduced by equitable allocation of private investment and equitable distribution of public investment.


2020 ◽  
Author(s):  
Konstantinos Karagiorgos ◽  
Daniel Knos ◽  
Jan Haas ◽  
Sven Halldin ◽  
Barbara Blumenthal ◽  
...  

&lt;p&gt;Pluvial floods are one of the most significant natural hazards in Europe causing severe damage to urban areas. Following the projected increase in extreme precipitation and the ongoing urbanization, these events play an important role in the ongoing flood risk management discussion and provoke serious risk to the public as well as to the insurance sector. However, this type of flood, remains a poorly documented phenomenon. To address this gap, Swedish Pluvial Modelling Analysis and Safety Handling (SPLASH) project aims to develop new methods and types of data that improve the possibility to value flood risk in Swedish municipalities by collaboration between different disciplines.&lt;/p&gt;&lt;p&gt;SPLASH project allows to investigating the impact of heavy precipitation along the entire risk modelling chain, ultimate needed for effective prevention. This study presents a pluvial flood catastrophe modelling framework to identify and assess hazard, exposure and vulnerability in urban context. An integrated approach is adopted by incorporating &amp;#8216;rainfall-damage&amp;#8217; patterns, flood inundation modelling, vulnerability tools and risk management. The project is developed in the &amp;#8216;OASIS Loss Modelling Framework&amp;#8217; platform, jointly with end-users from the public sector and the insurance industry.&lt;/p&gt;&lt;p&gt;The Swedish case study indicates that the framework presented can be considered as an important decision making tool, by establishing an area for collaboration between academia; insurance businesses and rescue services, to reduce long-term disaster risk in Sweden.&lt;/p&gt;


2019 ◽  
Vol 2 (2) ◽  
pp. 42
Author(s):  
Krzysztof Jarosiński ◽  
Benedykt Opałka

The risk of financing of public investments is a phenomenon that accompanies development processes in a permanent manner. Investments in the public sector are generally characterized by relatively long implementation cycles and involve significant capital expenditure and the necessity of often parallel running a large number of investment projects. In the processes of this type of investment a specific risk category of financing of this type of investment is quite often taken into account, given that such projects are financed mainly from budgetary resources: the state budget and self-government budgets. Economic practice indicates an importance of the proper selection of the method of the financing of new investments and taking into account new funds from various sources. This situation is often the result of a shortage of budgetary resources from which public investments could be financed. There may be difficulties in financing investments resulting from the emergence of a risk of budgetary deficit and the public debt. This risk may have a negative impact on investment decisions and may adversely affect the future course of ongoing investment projects. The purpose of the paper is to undertake studies on the conditions of financing investments from the point of view of the possibility of budget deficit and public debt and the impact of changes in the financial situation on the overall level of risk of public investment. The text is an invitation to undertake a broader discussion on financing public investments in conditions of limited public financial resources.


Author(s):  
Martin Ferko ◽  
Jan Česelský ◽  
Zbyněk Proske

Abstract The paper shortly introduces and describes a computational model that illustrates the impact of land development construction investment in the form of creating new needs for public infrastructure and community facilities in the territory. New construction investment may also initiate other construction investment, which also increases the demands on ensuring the capacity of public infrastructure. For public administration (local and regional), the created model can facilitate preparation, decision-making and management of public investment in the territory while respecting the 3E principle.


1991 ◽  
Vol 30 (4II) ◽  
pp. 721-729
Author(s):  
Khwaja Sarmad

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.]


Author(s):  
Richard O. J. H. Stutt ◽  
Renata Retkute ◽  
Michael Bradley ◽  
Christopher A. Gilligan ◽  
John Colvin

COVID-19 is characterized by an infectious pre-symptomatic period, when newly infected individuals can unwittingly infect others. We are interested in what benefits facemasks could offer as a non-pharmaceutical intervention, especially in the settings where high-technology interventions, such as contact tracing using mobile apps or rapid case detection via molecular tests, are not sustainable. Here, we report the results of two mathematical models and show that facemask use by the public could make a major contribution to reducing the impact of the COVID-19 pandemic. Our intention is to provide a simple modelling framework to examine the dynamics of COVID-19 epidemics when facemasks are worn by the public, with or without imposed ‘lock-down’ periods. Our results are illustrated for a number of plausible values for parameter ranges describing epidemiological processes and mechanistic properties of facemasks, in the absence of current measurements for these values. We show that, when facemasks are used by the public all the time (not just from when symptoms first appear), the effective reproduction number, R e , can be decreased below 1, leading to the mitigation of epidemic spread. Under certain conditions, when lock-down periods are implemented in combination with 100% facemask use, there is vastly less disease spread, secondary and tertiary waves are flattened and the epidemic is brought under control. The effect occurs even when it is assumed that facemasks are only 50% effective at capturing exhaled virus inoculum with an equal or lower efficiency on inhalation. Facemask use by the public has been suggested to be ineffective because wearers may touch their faces more often, thus increasing the probability of contracting COVID-19. For completeness, our models show that facemask adoption provides population-level benefits, even in circumstances where wearers are placed at increased risk. At the time of writing, facemask use by the public has not been recommended in many countries, but a recommendation for wearing face-coverings has just been announced for Scotland. Even if facemask use began after the start of the first lock-down period, our results show that benefits could still accrue by reducing the risk of the occurrence of further COVID-19 waves. We examine the effects of different rates of facemask adoption without lock-down periods and show that, even at lower levels of adoption, benefits accrue to the facemask wearers. These analyses may explain why some countries, where adoption of facemask use by the public is around 100%, have experienced significantly lower rates of COVID-19 spread and associated deaths. We conclude that facemask use by the public, when used in combination with physical distancing or periods of lock-down, may provide an acceptable way of managing the COVID-19 pandemic and re-opening economic activity. These results are relevant to the developed as well as the developing world, where large numbers of people are resource poor, but fabrication of home-made, effective facemasks is possible. A key message from our analyses to aid the widespread adoption of facemasks would be: ‘my mask protects you, your mask protects me’.


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