The link between public and private investment is investigated using annual data for the period 1964–65 to 2004–05. The estimates based on the structural cointegration approach indicate that both are cointegrated and public investment crowds in private investment. The study then...

This study analyses the effects of public and private investment on Portuguese GDP in the period 1960-2013. After a brief review of the literature based on works developed primarily in the context of VAR analyses, such as those by Pereira and Andraz (2005), and Afonso and St Aubyn (2008), an...

The traditional approach towards analyzing the impact of public investment has been through including public capital as a third input factor in a Solow-model production function. Nonetheless, such approach implies several problems both at the theoretical and empirical level. Given such problems,...

This study explores the determinants of investment using both aggregated industry-level data and disaggretated data on 27 sub-sectors of the manufacturing sector for the period 1970-2001. According to the results in this study, the government has potentially powerful means at its disposal to...

Using annual data from 14 European Union countries, plus Canada, Japan and the United States, we evaluate the macroeconomic effects of public and private investment through VAR analysis. From impulse response functions, we are able to assess the extent of crowding-in or crowding-out of both...

The issue of whether government capital is productive has received a great deal of recent attention. Yet empirical analyses of public capital productivity have generally been limited to the official capital stock estimates available in a small sample of countries. Alternatively, many researchers...

The paper looks at the growth and investment performance of six Asian countries - Bangladesh, India, Indonesia, Malaysia, Pakistan and Thailand. Having discussed the time series properties of the public and private investment series and the GDP growth rate, the paper goes on to use the concept...

In this paper, we carry out qualitative and quantitative analyses of impacts of factor market distortions on Japan's economic stagnation in the 1990s, thereby showing that resolution of structural impediments is essential for the restoration of sustained economic growth. Distortions in factor...

We study the effects of credit shocks in a model with heterogeneous entrepreneurs, financing constraints, and a realistic firm-size distribution. As entrepreneurial firms can grow only slowly and rely heavily on retained earnings to expand the size of their business, we show that, by reducing...