Economics, Econometrics and Finance
4 years ago

Public investment in Pakistan hinders economic growth, private investment key.

Pénzügyi Szemle = Public Finance Quarterly
Exploring the link between Public Investment and Long Run Economic Growth
Amna Sohail Rawat, Lubna Khan

Paper Summary

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The study looked at how public investment affects economic growth in Pakistan from 1973 to 2015. They used a model to analyze the relationship between public investment, private investment, and labor force on economic growth. The results showed that while a lot of public investment can reduce economic growth, more private investment can boost it. Also, an increase in the labor force can decrease economic growth in the long run. This information can help the government and policymakers make decisions to improve economic growth.