Economics, Econometrics and Finance
2 years ago

Boosting public investment can turbocharge private investment, new study finds!

International Journal of Finance & Economics
Is there a nonlinear relationship between public investment and private investment? Evidence from 21 <scp>Organization for Economic Cooperation and Development</scp> countries
Sofia São Marcos, Sofia Vale

Paper Summary

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The study looked at how public investment affects private investment in 21 OECD countries from 2000 to 2019. They found that there are specific levels of public investment, GDP growth rate, and interest rates that impact the relationship between public and private investment. The results show that increasing public investment can actually boost private investment, leading to positive outcomes for the economy.