Public investment boosts private investment, but private investment drives economic growth.
The study looked at how public investment affects private investment and economic growth in Ethiopia. They found that public investment boosts private investment in the long run, but doesn't directly impact economic growth. Private investment, on the other hand, has a positive effect on economic growth in the long run. This suggests that private investment plays a bigger role in driving economic growth than public investment. To promote economic growth, it's important for policymakers to maintain efficient public investment and increase infrastructure spending to support private investment in the long term.