Impact Of Public Investment Research Articles

The impact of public investment on private investment in Vietnam

The impact of public investment on private investment in Vietnam

Public governance, public investment and regional economic growth: Evidence from Vietnam

The article provides evidence on the effect of local public governance on the impact of public investment on local and regional economic growth, using spatial and regional logic. The research uses the spatial Durbin model and produces a panel data set that was conducted on 63 provinces of Vietnam from 2006 to 2022. Based on the interaction between public governance and public investment, the main findings indicate that their interaction plays an important role in adjusting the effects of public investment and public governance on economic growth not only in the locality but also spillover to neighboring localities in both the short and long terms. It suggests that local public governance not only hampers the impact of local public investment on local economic growth but also has spillover effects on the growth of neighboring provinces or regions in Vietnam. Additionally, the results of detailed analysis of PCI component indicators show that many aspects of local public governance are hindering local economic growth but contributing to promoting neighboring localities economic growth. Or, it has no effect the locality but promote or hinder the regional economic growth. The findings in this study implies that authorities of localities need to be cautious when using resources to improve the various aspects of public governance when designing strategies to enhance the quality of local public governance. It also suggests that this spillover effect is a crucial factor in advocating for more redistributive fiscal policies and regional governance policies aimed at reducing economic disparities caused by territorial boundaries. Therefore, authorities should prioritize regional cooperation strategies in their decisions regarding public governance and public capital allocation.

The Impact of Public Investment on Urban Growth Under Different Scenarios by Using the SLEUTH as a Forecasting Model: The Case of Konya/Turkey

The Impact of Public Investment on Urban Growth Under Different Scenarios by Using the SLEUTH as a Forecasting Model: The Case of Konya/Turkey

The Impact of Public Investment on Private Investment in Botswana: A Disaggregated Approach

The study examined the crowding in or out effect of public investment on private investment in Botswana from 1980 to 2018 using the autoregressive distributed lag bounds testing approach. The findings of the study indicate that infrastructure public investment negatively affects private investment while non-infrastructure public investment has a positive impact on private investment in the short run. The study concluded that infrastructure public investment crowd out private investment while non-infrastructure public investment crowds in private investment only in the short run. The recommendation emanating from the study is that the government should spend more on non-infrastructure public investment in order to crowd in private investment, especially in the short run, and introduce more initiatives to promote the role of the private sector in growing the economy.

The Impact of Public Investment on Private Investment: A Disaggregated Analysis

The impact of public investment on private investment has been a matter of great interest in economic literature. Classical economists believed that public investment crowds out private investment. While Keynesian economists counter this argument and argued that public investment increases or crowds in private investment because of the multiplier effect. Many of the empirical studies have directly examined this by testing whether a statistically significant relationship exists or not, between public investment and private investment. The empirical work appears with mixed statistical results on the relationship between public and private investment. Results of Erenburg and Wohar (1995), Pereira (2001, 2003), Pereira and Roca-Sagales (2001), Hyder (2002) and Naqvi (2002) showed that public investment crowds in private investment while Pradhan, Ratha and Sarma (1990), Haque and Montiel (1993), Ahmed (1994), Voss (2002) and Narayan (2004) showed that public investment crowds out private investment.

The Impact of Public Investment on Economic Growth in Pakistan

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.

PUBLIC INVESTMENT IN HUMAN CAPITAL AND ECONOMIC GROWTH IN ALGERIA: AN EMPIRICAL STUDY USING ARDL APPROACH

This paper examines the link between public investment in human capital and economic growth in Algeria over the period 1990 – 2017. To do so, public expenditures on education and health have been used to investigate their impact on economic growth. The study employs the autoregressive distributed lag (ARDL) approach. The main finding of this paper is that there is no cointegrating relationship between these two variables in the long run. This evidence suggests rethinking the way the public funds are devoted to the education and health sectors. This becomes today a chief priority for policy makers in order to strengthen the impact of public investment in human capital on economic growth in the future.

Impact of Public Investment on Small-Scale Irrigation and the Welfare of Farmer Households in the Saline Zone in West Bengal, India

Irrigation plays an important role in improving smallholder agricultural production and/or productivity, household food security and rural poverty reduction in the developing countries. The objective of this study is to assess the impact of irrigation access on household welfare (measured in terms of household expenditure) in the saline zone in West Bengal, India. A total of 440 farming households were interviewed and the data were analysed using the Propensity Score Matching (PSM) method. The study results indicated that irrigation access has a significant positive impact on improving household welfare The paper concludes that the government’s investment on the renovation of water bodies is justified. The paper suggests for complementary support services and rural development projects for reduction of rural poverty.

Impact of Public Investment Through Public Debt on Economic Growth: Empirical Analysis in European Countries in Transition

The main aim of this study is to investigate the link between public investment and public debt in transition countries. This analysis includes European countries in transition, and the source of data will be the World Bank, the International Monetary Fund, and Eurostat. This study has particular scientific importance; firstly, this study will reflect the relationship between public investment and public debt. Secondly, this study will give empirical data that shows the impact of public debt through public investment on economic growth in European countries in transition. To conduct this research, we have used various econometric models, such as OLS, Fixed and Random Effects, Hausman-Taylor, and GMM. The results obtained through this study are in full accordance with the theoretical hypotheses presented at the beginning of this research which emphasize that public debt is likely to affect economic growth through public investment positively. Empirical results show that public debt positively affects economic growth through public investment in transition countries in Europe, and it can be argued that these countries can increase the level of debt to finance public capital investment which then affects economic growth. The findings of this study are beneficial for the governments of European countries in transition, as it provides them with helpful information on the link between investment and public debt.

The impact of agricultural producer price on sustainable food security in Africa – a system GMM approach

Purpose. Given the efforts towards achieving the United Nations’ Sustainable Development Goals (SDGs) for food security by 2030, this study investigates the moderating impact of public investments in agriculture on the agricultural producer price – agricultural sustainability nexus in 40 African countries covering the period from 2000 till 2019.
 Methodology / approach. In this study we used multiple regression techniques to explore a dynamic panel data model based on the one-step system Generalized Method of Moments (System-GMM). Proposed by Arellano and Bover and further developed by Blundell and Bond, the System-GMM estimator was preferred over other techniques because of its efficiency in eliminating the simultaneous biases that are associated with regression model estimations. Specifically, the one-step System-GMM was preferred over the two-step System-GMM for our estimation due to the efficiency of its optimal weighting matrices.
 Results. The study discovered that although the interactions between public investments on agriculture and agricultural sustainability amplify the positive impact of a set of explanatory variables on agricultural producer price to an extent, the impact on food security in Africa is insignificant. The study also discovers that the net effects of a set of interactive terms on producer price in the developing countries in Africa are slightly lower than in the least-developed countries. The weighted average food security index for the period under study was abysmal 44.54%, indicating moderate food insecurity in Africa. 
 Originality / scientific novelty. In the context of food security literature in Africa, this study is the first attempt at exploring the agricultural producer price – agricultural sustainability nexus based on the moderating impact of public investments on agriculture with the Global Food Security Index (GFSI), a composite food security model developed by the Economist Intelligence Unit (EIU). Among our study proposals it is a call for a detour from the current agricultural investment and producer price policies especially the current ‘one-size-fits-all’ regional frameworks which have proved to be less progressive and less transformative to more robust country/sector-specific frameworks that have the potential to better the fortunes of agriculture and improve food security. 
 Practical value / implications. The current state of agricultural producer price in most African countries is ample proof that the role and importance of the producer price have been gravely diminished. Despite governments’ efforts towards improving food security, the evidence as presented in this study supports the fact that those efforts have not achieved much success. The study, which contains a number of recommendations, highlights agricultural producer price as a potentially important driver of agricultural sustainability and sustainable food security in Africa.

FDI and growth: Evidence from provinces and cities in South East region of Vietnam

The paper uses recent panel dataset of provinces and cities in South East region of Vietnam to investigate the effects of foreign direct investment (FDI), local governance quality, state investment rate, domestic private investment rate and trade openness on economic growth. Empirical results show that an increase in foreign direct investment share to GRDP and governance capacity and quality of provincial authorities in creating a favorable business environment will significantly impulse the growth of the local economy. The private investment is found to play an important role in the economic growth of South East provinces and cities, while the impact of public investment and trade openness on economic growth of the region is found to be insignificant over the period 2015 - 2019.

Impact of Public Investments on the Local Development of the Sarnaki Commune in the Years 2014-2020

Abstract Subject and purpose of work: The aim of the work was to show the impact of the implemented public investments and development projects on the local development and the changes that occurred, as well as on the living conditions of the inhabitants of the Sarnaki Commune in 2014- 2020. The research problem of the study was to show the role and the nature of the investments made by the commune in the area of local development. The assumed hypothesis states that the investments implemented in the Sarnaki Commune in the period 2014-2020 have led to the socio-economic development of the commune. Materials and methods: The publication used Polish literature concerning local investments, local development and local government, statistical data and an analysis of the documentation related to the investments obtained from the Sarnaki Commune Office. In order to achieve the aim of the study, a survey was carried out among a deliberately selected group consisting of the representatives of the commune office (commune administrator, secretary, and treasurer), the councilors (legislative authority) and the village leaders (opinion-forming authority) of the Sarnaki commune. A particularly important group included the village leaders, that is the representatives of the local community who are the closest to social developmental problems and are impartial in issuing their opinions. A separate research group consisted of social representatives who were elected in democratic elections by the inhabitants, and who are closely related and knowledgeable about social and economic matters. Some information was also collected from the employees of the commune office. Results: The conducted analyses and the research show that the implemented public investments in the commune studied had the most positive impact on the technical infrastructure in which the most funds were invested. They had the most impact on the access to sports and recreation facilities, road and water infrastructure, as well as on the state of the natural environment and the aesthetics of the surroundings. On the other hand, they had the least impact on the employment opportunities in the commune, access to housing infrastructure and public safety. Conclusions: The investments carried out in the period 2014-2020 in the Sarnaki Commune led to the socio-economic development of the commune, and, as a result, to positive changes, both quantitative and qualitative, in the local development as well as in the living conditions of the inhabitants.

Performance of public R&D systems: Case study of Visegrad countries

AbstractThe purpose of our contribution is to discuss shortcomings of purely descriptive quantitative evaluation of research policies – based either on inputs (public investment, number of researchers), or outputs (publications, EU grants, number of patents). To give an example, we compare selected indicators across Visegrad countries in the period between 2006 and 2015. We conclude that both quantitative and qualitative perspectives as well as societal and political contexts should be taken into account when the performance of any R&D system and the impact of public investments into a public R&D sector are scrutinized.

Impact of public investment on the quality of human capital

The article discusses the importance of the problem of human capital formation. Human capital is a multifaceted concept that gives the greatest return in a modern economy. It is measurable. Since 1990, the World Bank has published annual reports on its dynamics, having developed a special index called the Human Development Index. In 1990, when the index was measured for the first time, the Russian Federation was in 49th place in the ranking, but subsequently dropped to 65. Last year we were able to move up to 41st place. The authors trace the dynamics of government investment in human capital and the final result, which is reflected in places in the world ranking. In the nineties of the twentieth century, the Russian Federation was in a deep crisis, investments in human capital were negative, so the place in the HDI rating dropped. Currently, a number of government programs aimed at the development of human capital are being implemented, and they are paying off.

Restriction of Technical Capabilities, Public Investment and Human Development: A Panel Results Analysis for Local Governments of the Department of Ayacucho in Peru, 2010-2012

The present research work analyzes the contribution of the restriction of technical capacities to the level of human development registered in the local governments of Ayacucho during the period 2010-2012. This paper is testing to evaluate if during 2010-2012 period, the reduction of human development levels of the local governments of the department of Ayacucho is due to the restriction of technical capacities that limit the execution of public investment at the local level. In particular, the results obtained support the research hypothesis that during the reference period, the expenditure of the local governments of the department of Ayacucho is mainly limited by two factors: first, the restriction of technical capacities in municipal policy and management; and second, the strategic planning. These two factors in turn, reduce the execution of public investment by 9.32% and 6.12%, respectively. Likewise, this capacity restriction contributes to a reduction in the execution of public investment by 8.35%. Additionally, it is found that, although the impact of public investment on human development at the local level is positive, in terms of magnitude, it is relatively minor, as shown in the empirical work carried out by Correa & Morocho (2015). Finally, it is found that during the period 2010-2012, the technical capacity constraints in municipal policy and management, plus lack of appropriate strategic planning, reduced the Human Development Index (HDI) of the local governments of Ayacucho by 0.10%, 0.06% and 0.08%, respectively.

Public health investments and mortality risk in Brazilian peritoneal dialysis patients.

BackgroundEnd-stage kidney disease (ESKD) treatment is very costly and accounts for a significant percentage of public healthcare expenditures. Beyond direct costs, dialysis patients use other healthcare levels, but the impact of public investment on each of these levels is unclear. This study aimed to investigate the association between direct financing at different healthcare levels and overall mortality in peritoneal dialysis (PD) patients.MethodsWe included all adult incident PD patients from a Brazilian prospective, nationwide PD cohort. Overall mortality was the primary outcome of interest. We used a three-level multilevel survival analysis to investigate whether mortality was associated with the investments destined to different levels of healthcare complexity: (i) primary, (ii) medium and high and (iii) professional healthcare training and community awareness.ResultsWe evaluated 5707 incident PD patients from 78 Brazilian cities, which were divided into four quartiles for each healthcare level (Groups I–IV). After taking the highest quartile (Group IV) as a reference, investment in the primary health level was not associated with patient survival. Otherwise, medium and high complexity levels were associated with higher mortality risk. Also, investment in healthcare manager training and community awareness had an impact on patient survival.ConclusionsInvestments in different levels of the healthcare system have distinct impacts on PD patient survival. Investment in healthcare manager training and community awareness seems to be a promising strategy on which to focus, given the relatively low cost and positive impact on outcome.

Private and public investment in sub-Saharan Africa: The role of instability risks

This paper explores the impact of public investment on private investment in sub-Saharan Africa using the finite mixture model. We argue that the impact of public investment on private investment differs across groups of countries with similar but unobserved characteristics. Contrary to previous studies, the paper incorporates the potential presence of hidden heterogeneity and tries to explain the group membership. Using a sample of 42 countries, we find that the impact of public investment on private investment differs across three different groups of countries. Moreover, we find that countries with high risk of conflict, terrorism and repatriation of profits are less likely to be in the group where public investment crowds in private investment. The paper underscores the need for sub-Saharan African countries to ensure private investment security by reducing the risks associated with conflicts and terrorism, and preserving contract viability and repatriation of profits.

Public investment and growth: Lessons learned from 60-years experience in Southern Italy

This article analyses the contribution of public investment to economic growth in Southern Italy in the second half of the twentieth century (1951–2011). The Bai–Perron tests suggest that economic growth followed three distinct regimes: accelerated growth in the years 1951–1973 (average growth rate 5.3%); low growth in the period 1974–1995 (average growth rate 1.6%); zero growth on average after 1995. Using cointegration analysis, we find a positive effect of public investment on per unit of labour output of the Mezzogiorno in the whole period, 1951–2011. However, the estimates of the model show statistically significant parameters of public investment in the first regime, but not in the second regime, when economic growth is sustained by business investment and technical change. The last phase of growth sees the negative influence of the social and institutional environment on the functioning of the economy. The different impact of public investment on growth over time is ascribed to changes in the quality of institutions.

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

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.

The impacts of public investment on return and economic growth by economic industry in Vietnam

This study empirically analyses the impact of public investment from government budget on economic growth by measuring the indirect effects of public investment on return and private investment in 16 economic industries from 1990 to 2016. The findings show the positive relationship between private investment and return on total assets by industry. Economic growth, the share of public investment in infrastructure and the share of public investment in education also have a positive impact on return on total assets by industry. However, total state sector investment has the negative effect on the return on total assets by industry. In addition, when observing after tax profit by industry, there appears that the share of total investment in GDP is positively affected by the share of manufacturing industry in GDP and labour productivity by industry.