Public investment boosts economic growth in 22 OECD countries, study finds.
Public capital has a positive impact on the economy in most OECD countries, according to a study of 22 nations. By analyzing public and private capital stocks, researchers found that investing in public infrastructure boosts real GDP in the short, medium, and long term. In countries where the effect is negative, factors like different investment productivities, crowding out, or high government debt growth rates are considered.