The Impact of Public Investment on Economic Growth in Pakistan

Ejaz Ghani

70 citations0/0 files storedThe Pakistan Development Review

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Fiscal Policy and Economic Growth Monetary Policy and Economic Impact Economic Growth and Fiscal Policies

Abstract

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.

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References

1988On the mechanics of economic development 1986Increasing Returns and Long-Run Growth 1988Statistical analysis of cointegration vectors 1992A Contribution to the Empirics of Economic Growth 1989Economic Growth in a Cross Section of Countries 1990Government Spending in a Simple Model of Endogeneous Growth 1989Is public expenditure productive?1991Long-Run Policy Analysis and Long-Run Growth

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