Economics, Econometrics and Finance
2 years ago

Public investment doubles private investment, boosting economic growth and infrastructure development.

1 view
European Journal of Political Economy
Invest one – get two extra: Public investment crowds in private investment
Oļegs Matvejevs, Oļegs Tkačevs

Paper Summary

The study found that when governments invest more money in public projects like infrastructure and education, private businesses also tend to invest more. This means that for every extra dollar the government spends, private companies end up investing about two dollars. So, public investment can actually encourage more private investment in the long run.

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