scholarly journals Inflation and the public investment: Growth relationship in Vietnam

2018 ◽  
Vol 25 (S01) ◽  
pp. 50-67
Author(s):  
Bon Nguyen Van
Keyword(s):  
Economic Growth ◽  
Public Investment ◽  
Trade Openness ◽  
Private Investment ◽  
Public Capital ◽  
Policy Implications ◽  
The Public ◽  
Capital Spending ◽  
Investment Growth

Public capital spending positively contributes to economic growth and development in many countries worldwide. However, questions concerning the importance of inflation in the public investment–growth relationship are of great interest. This study examines the role of inflation in the public investment–growth relationship in Vietnam using the two-step GMM Arellano-Bond estimators for a balanced panel data of 52 provinces during the period of 2005–2014. More interesting are the empirical findings. First, inflation significantly increases the volume of public capital spending. Second, public investment and inflation enhance economic growth, but their interaction term impedes it. Third, private investment, government recurrent expenditure, and trade openness are the significant determinants of growth. These findings suggest some important policy implications related to public capital spending and inflation in developing countries, specifically the Vietnam government.

scholarly journals Government Spending and Economic Growth in Cameroon

2018 ◽  
Vol 14 (28) ◽  
pp. 68
Author(s):  
Donald Djatcho Siefu ◽  
Martin Njocke ◽  
Neba Cletus Yah
Keyword(s):  
Economic Growth ◽  
Government Spending ◽  
Public Investment ◽  
Private Investment ◽  
Government Investment ◽  
Public And Private ◽  
Role Of Government ◽  
The Public ◽  
Investment Spending

Today, the role of government spending which is considered as the main instrument in the promotion of economic development is seen in the public investment budget (PIB). This study analyzes the role of the public investment spending in the economic growth of Cameroon. Specifically, it brings out the effect of Public and Private Investment on GDP growth in Cameroon. The role of the PIB as an instigator of economic growth should be clarified in order to justify government investment expenditure. Many studies have analysed the relationship between government spending and economic growth but the analysis of the composition of government spending and induced economic growth is an aspect of economic analysis which deserves more interest. This study analysis the effect of government investment spending on economic growth in Cameroon going from the components of the GDP5 and using VAR (Vector Auto Regressive) model. Our results show the intervals in which the various components of government spending have an effect on economic growth in Cameroon. We find that the lagged GDP and government investments have a positive effect on growth whereas private investments affect it negatively.

scholarly journals Do FDI and Public Investment Crowd in/out Domestic Private Investment in the SADC Region

2021 ◽  
Vol 19 (1) ◽  
pp. 3-25
Author(s):  
Eslon Ngeendepi ◽  
Andrew Phiri
Keyword(s):  
Capital Expenditure ◽  
Public Investment ◽  
Trade Openness ◽  
Government Expenditure ◽  
Private Investment ◽  
Policy Implications ◽  
Domestic Investment ◽  
Government Investment ◽  
Long Run ◽  
Short Run

Our study examines the crowding-in/out effect of foreign direct investment and government expenditure on private domestic investment for 15 members of the Southern African Development Community (SADC) for the period 1991–2019. The study employed the panel Pool Mean Group (PMG)/ARDL technique in estimating the short-run and long-run cointegration relationships between FDI, government capital expenditure and domestic private investment and adds three more variables for control purposes (interest rate, GDP growth rate and trade openness). For the full sample, FDI crowds-in domestic investment whilst government crowds-out domestic investment. However, in performing a sensitivity analysis, in which the sample was segregated into low and high income economies, both FDI and government investment crowd-in domestic investment whilst government expenditure crowds-out domestic investment in lower income SADC countries with no effect of FDI on domestic investment. Policy implications are discussed.

REGIONAL CONVERGENCE OF ECONOMIC GROWTH DURING POST-REFORM PERIOD IN INDIA

2014 ◽  
Vol 59 (02) ◽  
pp. 1450012 ◽  
Author(s):  
JAGANNATH MALLICK
Keyword(s):  
Economic Growth ◽  
Growth Models ◽  
Public Investment ◽  
Private Investment ◽  
Club Convergence ◽  
Conditional Convergence ◽  
Indian States ◽  
Middle Income ◽  
The Public ◽  
Long Run

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.

scholarly journals Role of institutional quality in economic development: A case study of Asian countries

2021 ◽  
Vol 19 (2) ◽  
pp. 357-369
Author(s):  
Oanh Kim Thi Tran ◽  
Hac Dinh Le ◽  
Anh Hong Viet Nguyen
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Trade Openness ◽  
Institutional Quality ◽  
Policy Implications ◽  
Asian Countries ◽  
Regression Methods ◽  
Key Factor ◽  
The Impact

The paper investigates the impact of institutional quality on economic growth by taking 48 countries in Asia between 2005 and 2018. By using the quantile regression methods with panel data, institutional quality is found to be a key factor of economic development. However, in the lower-income Asian countries, the institution with better quality appears to promote the growth more effectively than in the higher-income ones. Moreover, the paper also finds out a nonlinear relationship between institutions and economic growth. The results show that there is an institutional threshold for economic growth to reach its highest level. If the institution indicator exceeds the threshold, it causes the reverse effect on the growth. Moreover, the economic growth of Asian countries is also affected by inflation (INF), labor force (LABO), trade openness (OPEN), and infrastructure (TELE). From that, the study suggests some policy implications for Asian countries and Vietnam, in particular, in order to improve institutions contributing to economic growth.

The Politics of Government–Business Relations in Ghana

1992 ◽  
Vol 30 (1) ◽  
pp. 97-111 ◽  
Author(s):  
Roger Tangri
Keyword(s):  
Economic Growth ◽  
Public Sector ◽  
Private Investment ◽  
Economic Life ◽  
National Commission ◽  
Policy Reforms ◽  
Economic Role ◽  
The Public ◽  
National Defence

The emergence of a consensus that the performance of the public sector in Ghana had been poor, and that there were limits as to what it could achieve in terms of economic growth, led the Provisional National Defence Council (P.N.D.C.) to implement various policy reforms. As the Governor of the Bank of Ghana argued in 1984: ‘Given the dismal performance of the public sector, there is need for greater reliance on private investment in the Government's efforts to resuscitate the economy’. At the same time, the P.N.D.C. began to reassess the economic role of the public sector. According to a recent document prepared by the National Commission for Democracy, ‘changed national policies’ in Ghana include ‘the reduction of the state's rôle in the economic life of the nation through shifting of more responsibility to the private sector.

scholarly journals Crowding-out Hypothesis in a Vector Error Correction Framework: A Case Study of Pakistan

2001 ◽  
Vol 40 (4II) ◽  
pp. 633-650 ◽  
Author(s):  
Kalim Hyder
Keyword(s):  
Economic Growth ◽  
Interest Rates ◽  
Budget Deficit ◽  
Public Investment ◽  
Private Investment ◽  
Vector Error Correction ◽  
The Public ◽  
Vector Error ◽  
Development Expenditure ◽  
Negative Effect

Under the umbrella of the IMF stabilisation programmes, Pakistan has pursued a policy of fiscal consolidation since 1988. A look at the budget deficit from 1988 onwards reveals that the policy has only been marginally successful. Even this fragile accomplishment of the Fund-based programme has been achieved at a much greater cost: the reduction in budget deficit has only been materialised because of the curtailment of development expenditure component of total fiscal outlays [Social Policy and Development Centre (2001)]. Economic theory suggests that development expenditure component of fiscal outlays, which also equals net investment by the public sector,1 has a significant relationship with both the rate of private investment and economic growth. If public investment increases, fewer funds will be available for private investment. Competition will thereby drive the interest rates up leading to lower level of private investment. Neo-classicals believe that this process will only result in a redistribution of gross national between the public and the private sector and the rate of economic growth will remain intact. On the other hand, Keynesians argue that the multiplier effect of higher public spending will be larger as compared to the induced negative effect of reduced private investment on the rate of economic activity and, therefore, gross national product will increase.

scholarly journals The Impact of Public Investment on Economic Growth in Pakistan

2006 ◽  
Vol 45 (1) ◽  
pp. 87-98 ◽  
Author(s):  
Ejaz Ghani ◽  
Musleh-ud Din
Keyword(s):  
Economic Growth ◽  
Public Investment ◽  
Private Investment ◽  
Jel Classification ◽  
Vector Autoregressive ◽  
Public Consumption ◽  
Strong Inference ◽  
The Impact ◽  
Theoretical Considerations

This paper explores the role of public investment in the process of economic growth, in the context of Pakistan’s economy, using the vector autoregressive approach (VAR). Based on theoretical considerations, the model also includes private investment and public consumption besides public investment. The results show that growth is largely driven by private investment and that no strong inference can be drawn from the effects of public investment and public consumption on economic growth. JEL Classification: E2, 04. Keywords: Public Investment, Economic Growth.

scholarly journals Role of Governance in Debt-Growth Relationship: Evidence from Panel Data Estimations

2021 ◽  
Vol 13 (11) ◽  
pp. 5954
Author(s):  
Qamar Abbas ◽  
Li Junqing ◽  
Muhammad Ramzan ◽  
Sumbal Fatima
Keyword(s):  
Economic Growth ◽  
Public Debt ◽  
Negative Impact ◽  
Positive Impact ◽  
Linear Pattern ◽  
The Public ◽  
Mediating Role ◽  
National Output ◽  
State Governance

This paper provides an empirical analysis of the relationship between debt and national output mediated by a measure of the quality of state governance. Using WGIs dataset of 106 countries for the period 1996–2015, the paper analyzes the mediated effect of governance on debt-growth relationship. For this purpose, we use the fixed effect (LSDV) and system GMM estimation technique in order to overcome the possible problem of endogeneity. Results show the non-linear pattern between public debt and economic growth via governance. Although, public debt has negative impact on economic growth, but the results are statistically positive and significant when public debt is interacted with governance, which confirms that governance is a channel by which public debt influences economic growth. Moreover, we calculate the threshold of governance which shows that the public debt has positive impact on economic growth when the governance level is higher than the threshold and adversely affects the economic growth in the case of low level of governance than threshold. Evidence from this study reveals the fact that governance plays a mediating role in debt-growth relationship as there is a pattern of complementarity between public debt and governance: the higher the level of governance, the lesser the adverse effect of public debt on economic growth.

scholarly journals Public Investment in Education and Training in Vietnam

2018 ◽  
Vol 11 (7) ◽  
pp. 106
Author(s):  
Phung Van Hien
Keyword(s):  
Economic Growth ◽  
Empirical Analysis ◽  
Public Investment ◽  
Education And Training ◽  
Public Budget ◽  
Investment Structure ◽  
National Productivity ◽  
Intellectual Level ◽  
And Training

Public investment in education and training occupies an important proportion in Vietnam public budget, approximately 20%, equivalent to 5% GDP. Public investment in education and training has many positive benefits and impact on the economy and society by contributing to economic growth, by improving the national productivity, people’s qualification and intellectual level well as reducing unemployment, poverty in a country. On the basis of an empirical analysis in Vietnam, this paper propose several relevant recommendation for Vietnam government to improve the performance of public investment in education and training by making contribution to ensure suitable investment structure as well as uphold important role of education and training to the development of the economy and society.

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