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.

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.

The Optimal Distribution Rule of Federal Funds to States in India: A Suggested Methodology

2021 ◽  
pp. 227797872198992
Author(s):  
Ajitava Raychaudhuri ◽  
Poulomi Roy
Keyword(s):  
Public Investment ◽  
Private Investment ◽  
Public Capital ◽  
Time Frame ◽  
Capital Formation ◽  
Horizontal Equity ◽  
Inequality Aversion ◽  
Vertical Equity ◽  
Distribution Rules ◽  
Distribution Rule

A federal country like India distributes centrally collected funds through certain distribution rules, framed by the finance commission every five years, which primarily aims at horizontal equity among the states, although the goal of vertical equity has also been accommodated lately. The distribution rules do change, but they are largely governed by population and taxable capacity in a static sense. As a result, this brings some horizontal equity in the stated time frame but misses the root cause of inequity among states. This highlights the importance of the dynamics of growth of per capita income of the states which depends on public capital formation since private investment is complementary to public investment. This also raises the issue of time preference along with the attitude towards inequality aversion on the part of individuals in different states in India, which determines the savings that set the limits to private capital formation. This helps one to estimate the optimal value of public capital in a state which would ensure certain predetermined growth target along with inclusivity. If the finance commission could accommodate in its distribution rule the development gap of each state in terms of actual and optimal public capital as mentioned, the horizontal as well as vertical equity can be pursued in a sustainable manner since this addresses both inequity among and within states over time.

Public and Private Spending: Some Australian Evidence

1995 ◽  
Vol 6 (1) ◽  
pp. 41-51
Author(s):  
Mehdi S. Monadjemi
Keyword(s):  
Public Investment ◽  
Government Expenditure ◽  
Private Investment ◽  
Crowding Out ◽  
Empirical Relationships ◽  
Public And Private ◽  
Investment Expenditure ◽  
Private Expenditure ◽  
Private Spending ◽  
The Relationship

This paper examines empirical relationships between government expenditure and private spending in Australia, to see whether government expenditure reduces, or crowds out, private expenditure or encourages it. Particular attention is paid to the effect on private investment expenditure and the possibility of a change occuring in the relationship between public and private is examined. Regression analysis found no significant evidence of crowding out. Public investment was found to compliment private investment in the period before 1974, but not in the period since then.

scholarly journals Republic of Estonia

2019 ◽  
Vol 19 (152) ◽  
pp. 1
Author(s):  
Keyword(s):  
Capital Stock ◽  
Capital Expenditure ◽  
Public Investment ◽  
Public Capital ◽  
Medium Term ◽  
Advanced Country ◽  
General Government ◽  
Efficiency And Effectiveness ◽  
High Level ◽  
The Eu

Public investment is a priority spending area, and Estonia is seeking to strengthen the efficiency and effectiveness of its capital expenditure from an already high level. Estonia’s general government capital expenditure has been higher than that of its neighboring comparators,1 EU countries or the average advanced country, at usually well above 5 percent of GDP. It is planned to continue at that level in the medium-term despite an expected decline of external grants from the EU. Thus, the level of public capital stock has been increasing as well as closing a gap to the comparator countries.

scholarly journals Efficiency-Adjusted Public Capital, Capital Grants, and Growth

2017 ◽  
Vol 17 (168) ◽  
Author(s):  
Ernesto Crivelli
Keyword(s):  
Economic Growth ◽  
Recent Literature ◽  
Public Investment ◽  
Public Capital ◽  
Potential Growth ◽  
Investment Capital ◽  
Management Institutions ◽  
The Impact ◽  
The Relationship

Recent literature has explored the relationship between efficiency-adjusted public capital and economic growth. A debate on whether capital grants, and especially EU funds actually contribute to growth has gained prominence lately. This paper empirically assesses the relationship between the quality of public investment, capital grants, and growth in a sample of 43 emerging and peripheral economies over 1991-2015. To this end, the contribution of public capital to growth is estimated using efficiency-adjusted public capital stock series, constructed reflecting the quality of public investment management institutions. In addition, the determinants of effective public investment are analyzed. The results suggest that capital grants contribute positively to effective public investment, and the latter is significant in explaining variations in economic growth. Finally, the paper illustrates the impact of raising EU funds absorption on potential growth in emerging and peripheral EU countries.

scholarly journals Assessing the effect of public capital on growth: An extension of the World Bank Long-Term Growth Model

2019 ◽  
Vol 3 (1) ◽  
pp. 22
Author(s):  
Sharmila Devadas ◽  
Steven Pennings
Keyword(s):  
Growth Model ◽  
Low Income ◽  
Capital Stock ◽  
Public Investment ◽  
Public Capital ◽  
Low Income Countries ◽  
The World ◽  
A Share

To analyze the effect of an increase in the quantity or quality of public investment on growth, this paper extends the World Bank’s Long-Term Growth Model (LTGM), by separating the total capital stock into public and private portions, with the former adjusted for its quality. The paper presents the LTGM public capital extension and accompanying freely downloadable Excel-based tool. It also constructs a new infrastructure efficiency index, by combining quality indicators for power, roads, and water as a cardinal measure of the quality of public capital in each country. In the model, public investment generates a larger boost to growth if existing stocks of public capital are low, or if public capital is particularly important in the production function. Through the lens of the model and utilizing newly-collated cross-country data, the paper presents three stylized facts and some related policy implications. First, the measured public capital stock is roughly constant as a share of gross domestic product (GDP) across income groups, which implies that the returns to new public investment, and its effect on growth, are roughly constant across development levels. Second, developing countries are relatively short of private capital, which means that private investment provides the largest boost to growth in low-income countries. Third, low-income countries have the lowest quality of public capital and the lowest efficient public capital stock as a share of GDP. Although this does not affect the returns to public investment, it means that improving the efficiency of public investment has a sizable effect on growth in low-income countries. Quantitatively, a permanent 1 ppt GDP increase in public investment boosts growth by around 0.1–0.2 ppts over the following few years (depending on the parameters), with the effect declining over time.

scholarly journals Effect of Public Investment on Private Investment and Economic Growth: Evidence From Vietnam by Economic Industries

2018 ◽  
Vol 5 (2) ◽  
pp. 95 ◽  
Author(s):  
Nguyen Thi Canh ◽  
Nguyen Anh Phong
Keyword(s):  
Economic Growth ◽  
Capital Stock ◽  
Positive Impact ◽  
Public Investment ◽  
Private Investment ◽  
Private Capital ◽  
Short Term ◽  
State Sector ◽  
The Impact

This study is to assess the impact of public investment on private investment and economic growth in Vietnam based on data from 22 economic industries over a 27-year period (1990-2016) by applying PVAR model combined with GMM. The results show that public investment and state sector investment (including public investment and state-owned enterprise investment for production and business activities) has the same positive impact economic growth in most economic industries in the long term, but state sector investment also creates more growth effects in the short term. Public investment has a cyclical impact on private capital stock (domestic private + FDI capital stock) and FDI investment; it has the effect of boosting domestic private investment, FDI investment in the short and long term. Meanwhile, state-sector investment has decreased the private capital stock in the short term, crowds out domestic private and FDI investments in the short term, and in the long term. Both public investment and state sector investment has the effect of increasing public debt in the long term. Based on these results we have some policy recommendations to increase efficiency of public investment and state sector investment.

scholarly journals Ukraine

2019 ◽  
Vol 2019 (356) ◽  
Author(s):  
Keyword(s):  
Capital Stock ◽  
Public Investment ◽  
Emerging Market ◽  
Public Capital ◽  
Allocation Of Resources ◽  
Investment Management ◽  
Emerging Market Countries ◽  
Recent Trends ◽  
High Level ◽  
Efficiency Gap

Ukraine’s public capital stock has been on a declining path over the last 20 years. Having started the period at a relatively high level (99 percent of GDP in 1996), it now ranks amongst the lowest of its comparator countries (56 percent in 2013). Evidence as to the reasons for the deterioration point to significant and persistent weaknesses in the institutional framework surrounding public investment management, inefficient allocation of resources to productive public investment and high levels of perceived corruption. Ukraine currently has an efficiency gap of around 32 percent, which ranks it below average amongst emerging market countries and other comparators. Persistent under-investment, the currently high stock of debt, and ongoing institutional weaknesses, coupled with effects of the conflict in the East could see this gap continuing to grow, absent concerted efforts to reverse recent trends.

scholarly journals Pakistan’s Infrastructure Capital-Growth Analysis

2020 ◽  
Vol 4 (1) ◽  
pp. 1-12
Author(s):  
Muhammad Ahmad Mazher ◽  
Jauhari Dahalan
Keyword(s):  
Capital Stock ◽  
Negative Impact ◽  
Public Investment ◽  
Private Investment ◽  
Empirical Literature ◽  
Private Capital ◽  
Government Investment ◽  
Real Gdp ◽  
Capital Growth ◽  
The Impact

Purpose- This empirical study facet at Pakistan for the period between 1960 and 2017 in the connection between public investment, public capital stock, private investment, private capital stock, and real GDP. Design/Methodology- Using theoretical and empirical literature assessment, to measure the impact of private investment, private capital stock, government investment, and government capital stock on Pakistan's real gross domestic product, we involved the ARDL Bound tests. Findings- A positive and significant connection was revealed between government investment, a private capital stock with real GDP. Private investment showed a substantial but negative impact in the short run, despite capital stocks indicating a positive and insignificant relationship with Pakistan's RGDP. The long-term consequences showed that the government's capital stocks, public investment, private capital stocks, and RGDP from Pakistan are linked positively and significantly. Private investment, however, has shown harmful and detrimental or insignificant relations with Pakistan's RGDP. Practical Implications- Our study may benefit the Pakistani economy, particularly while useful for academics and researchers to understand the basic concept of 'capital-growth' philosophy.

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