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

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.

scholarly journals The effect of Government investment and Private Investment on Economic Growth and Labor Absorption and Its Impact on Poverty Levels In The Province Of South Kalimantan

2019 ◽  
Vol 7 (10) ◽  
pp. 145-156
Author(s):  
Slamet Riyadi
Keyword(s):  
Economic Growth ◽  
Income Distribution ◽  
Private Investment ◽  
Poor People ◽  
Allocation Of Resources ◽  
Analysis Method ◽  
Government Investment ◽  
High Quality ◽  
Rapid Economic Growth ◽  
Poverty Levels

High-quality economic growth is economic growth that can encourage industrialization, can create jobs as wide as possible and can encourage the performance of other sectors more efficiently and effectively, high economic growth accompanied by efficient and effective allocation of resources can be stimulus in development to improve people's income so that it can reduce poverty. To reduce the level of poor people, of course, requires increased economic growth and equitable income distribution, rapid economic growth and not balanced with equity will lead to inequality between regions. There are several kinds of disparities that often block a society in its efforts to achieve prosperity, namely: (1) disparities between regions, (2) disparities between sectors, (3) disparities in the income distribution of the community. Studi aims to examine and analyze the effect of government investment and private investment on poverty levels through economic growth and labor absorption in South Kalimantan Province. The data analysis method used in this study is PLS to test the seven hypotheses formulated in this study. The conclusions of the results of this study are: 1) Government investment has a significant impact on economic growth. 2) Government investment does not have a significant impact on labor absorption. 3) Private investment does not have a significant impact on economic growth. 4) Private investment has a significant impact on labor absorption. 5) Economic growth has a significant impact on labor absorption. 6) Economic growth has a significant impact on reducing poverty levels. 7) Labor absorption has a significant impact on reducing poverty levels.    

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.

Public and Private Investment and Economic Growth: An Empirical Investigation

2018 ◽  
Vol 63 (2) ◽  
pp. 87-106 ◽  
Author(s):  
Garikai Makuyana ◽  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
Positive Impact ◽  
Public Investment ◽  
Private Investment ◽  
Current Debate ◽  
Annual Data ◽  
Public And Private ◽  
Long Run ◽  
Short Run ◽  
Crowd Out

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.

scholarly journals Revisiting the Relationship between Economic Growth and Government Size

2012 ◽  
Vol 2012 ◽  
pp. 1-8 ◽  
Author(s):  
Atrayee Ghosh Roy
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Government Expenditure ◽  
Private Investment ◽  
The United States ◽  
Simultaneous Equation ◽  
Series Data ◽  
Government Size ◽  
Government Investment ◽  
Government Consumption

The purpose of this paper is to explore the association between government size and economic growth in the United States using time-series data over the period 1950–2007. In particular, this paper examines the effects of two key components of government expenditure, namely, government consumption and government investment, on US economic growth. A simultaneous-equation model is used to deal with the problem of bi-directional relationship between government size and economic growth. The results suggest that an increase in government consumption slows economic growth, while a rise in government investment enhances economic growth. Furthermore, the results also show that government investment crowds out private investment. Therefore, the overall effect of total government expenditure on economic growth is ambiguous.

scholarly journals Peran Sumber Daya Pada Pertumbuhan Ekonomi Daerah Perbatasan Timor Leste

2020 ◽  
Vol 7 (2) ◽  
pp. 98
Author(s):  
Kamilaus Konstanse Oki ◽  
Margareta Diana Pangastuti
Keyword(s):  
Economic Growth ◽  
Human Resources ◽  
Natural Resources ◽  
Central Government ◽  
Analysis Tool ◽  
Important Indicator ◽  
Timor Leste ◽  
The Government ◽  
Indirect Relationship ◽  
Relationship Of

Economic growth is an important indicator of the success of development. The ability of resources is a determining factor driving economic growth. Belu Regency is a regency in East Nusa Tenggara Province, located on the Indonesia-Timor Leste border, has economic and political strategic value. Human resources, natural resources and the budget are the real sector of the economy in driving economic growth. The research objective was to analyze the effect of resources on the economic growth of Belu district. The study was conducted using secondary data and SmartPLS was the analysis tool. The results of the study, the relationship of natural resources directly with welfare is negative and will be positive when the indirect relationship through the budget. The direct and indirect relationship of human resources with welfare through the budget is positive, but the direct value relationship is smaller when compared to the indirect relationship. This shows that the budget that is formed from the wealth of natural resources and human resources is an important factor in creating public welfare as measured through economic growth. Budgets sourced from local and central government are increasing every year. The creation of the government and elements of society make the most of resources. The attention of the central government through balancing funds is very high. This is because Belu district located on the Indonesia-Timor Leste border is a macroeconomic picture of the border country

scholarly journals PENGARUH INVESTASI TERHADAP PERTUMBUHAN EKONOMI KOTA SURABAYA DAN PEMILIHAN LOKASI PERMUKIMAN DAN TRANSPORTASI DI KOTA SURABAYA

2009 ◽  
Vol 5 (2) ◽  
Author(s):  
* JAMHADI
Keyword(s):  
Economic Growth ◽  
Practical Implication ◽  
Central Business District ◽  
Private Investment ◽  
Government Investment ◽  
Agriculture Sector ◽  
Economical Development ◽  
Business District ◽  
Economical Growth ◽  
The Village

The objective of this Dissertation (1) to verify and analyze the influence of private investment toward economical development. (2) to ensure and analyze the influence of government investment toward the economical development. The find in this dessertatition are (1) Government investment and private investment fromSurabayaand its hinterland city influences enough for economical growth. (2) the existing of hinterland area which influences the economical growth are Pasuruan and Mojokerto. Practical implication for Surabaya Local Government are: (1) to stimulate the village economic growth through the improvement of secondary town plan in the form of small business which give service and marketing of farming tools and material in order to stimulate of the absorption of employee more over in agriculture sector (2) the improvement of administration capacity for secondary town to organize the manufacture growing more efficient and regional development. Keywords:      Migrant; Economic Growth; Urban Economy; Central Business District (CBD).

scholarly journals The Effect of Investment on Poverty with Economic Growth as An Intervening Variables in Central Sulawesi

2021 ◽  
Vol 8 (1) ◽  
pp. 320-332
Author(s):  
Christina Shandra Tobondo ◽  
Djayani Nurdin ◽  
Eko Jokolelono
Keyword(s):  
Economic Growth ◽  
Foreign Investment ◽  
Partial Least Square ◽  
Equation Modeling ◽  
Direct Influence ◽  
Domestic Investment ◽  
Government Investment ◽  
Independent Variable ◽  
Poverty Levels ◽  
Central Sulawesi

This study aims to analyze the direct and indirect effects of foreign investment (PMA), domestic investment (PMDN), and government investment on poverty levels through economic growth in Central Sulawesi Province. Research explanations (explanatory research) will prove a causal relationship between the independent variable (independent variable) foreign direct investment (FDI), investment in the country (domestic), and government investment, with poverty as the dependent variable (dependent variable) with a variable economic growth as a variable intervening. The type of data used in this study is panel data (pooled data). The sampling method used purposive sampling technique. Using SEM (Structural Equation Modeling) analysis tools with the PLS (Partial Least Square) approach. The results of the first hypothesis show that there is a direct influence between foreign investment (PMA) and government investment on poverty levels in Central Sulawesi, but there is no direct influence between domestic investment (PMDN) on poverty levels in Central Sulawesi. The second hypothesis testing shows that there is an indirect effect between foreign investment, domestic investment, and government investment on poverty levels through economic growth in Central Sulawesi. Efforts to increase economic growth and reduce poverty in Central Sulawesi can be carried out through the creation of a conducive social, political, legal, and bureaucratic system, the realization of investment that is directly correlated with economic programs to alleviate poverty, and maximize the use of Corporate Social Responsibility funds. (CSR) by local governments through the body of the APBD.   Int. J. Soc. Sc. Manage. Vol. 8, Issue-1: 320-332  

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

2019 ◽  
Vol 11 (12) ◽  
pp. 3359 ◽  
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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