Economists have argued that public capital is one of the important business stimuli to the performance of private capital expenditure. This argument is considered as the main essence in the theory Public Capital Hypothesis (PCH) that proposed by Aschauer. PCH postulates that a positive...

It is generally accepted that the government plays a major role in promoting and/or financing private capital formation. Policymakers and analysts believe that public investment provides a significant stimulus to private investment, and thus serves as an instrument in achieving a high economic...