The Impact of Public Investment on Economic Growth in Pakistan

Ghani, Ejaz; Din, Musleh ud

doi:10.30541/v45i1pp.87-98

Cited by 50 publications

(52 citation statements)

References 33 publications

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“…So, overall increase in public investment in Pakistan not only effect economic growth but also creates hurdles in the pace of development. In the case of Pakistan the public investment has great effect on economic growth, the provision of public investment raises the GDP (Ghani and Din, 2006).…”

Section: Public Investment Economic Growth and Pakistanmentioning

confidence: 99%

Impact of Public Investment on Economic Growth

Rabnawaz

Jafar

2015

SSRN Journal

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The study examines the relationship between Gross domestic product and public investment. Time series data for empirical investigation covers the period 1980-2009. The data has collected from Pakistan bureau of Statistics, State bank of Pakistan (SBP) and Stockholm International Peace Research Institute (SIPRI). Empirical results show, there is a positive relationship between GDP and public investment in short run. The increase in GDP causes a rapid increase in public investment. Granger causality test apply to check the causality. Results of test show that bi-causal relationship exists between GDP and public investment. Causality runs from GDP to public investment and similarly, from public investment to GDP.

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Section: Public Investment Economic Growth and Pakistanmentioning

confidence: 99%

Impact of Public Investment on Economic Growth

Rabnawaz

Jafar

2015

SSRN Journal

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“…In this study, the authors use research variables to assess the interactive relationship between public investment and private investment and economic growth, along with other macro variables, according to studies done by Khan, M., & Kumar, M. (1997), Ghani, E., & Din, M. (2006), Phetsavong and Ichihashi (2012) or Zainah, P. (2009).…”

Section: Research Method Model and Datamentioning

confidence: 99%

“…Research results also indicated that both private investment and public investment contribute to economic growth. Ghani, E., & Din, M. (2006) have studied the impact of public investment on economic growth in Pakistan with using the vector autoregressive approach (VAR). The VAR consists of four variables including public investment, private investment, public consumption and GDP with data from 1973 to 2004.…”

Section: Literature Reviewmentioning

confidence: 99%

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

Canh¹,

Phong²

2018

AEF

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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 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.

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“…Ghani and Din (2006) [13] explored the relationship between public investment and economic growth for Pakistan economy. The study concluded that public investment had a negative, though insignificant impact on output.…”

Section: Literature Reviewmentioning

confidence: 99%