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The Influence Of Public And Private Sector Investment On Economic Growth In The European Union

Author

Listed:
  • Florin Teodor Boldeanu

    (Lucian Blaga University Doctoral Studies)

  • Madalin Sebastian Ion

    (Lucian Blaga University Doctoral Studies)

Abstract

The objective of this working paper is to investigate the correlation between private and public sector investment and economic growth in the European Union. The analysis will be made between 1996 and 2012. This was a time of big changes for the European community, by the large number of states that were integrated and also by the turbulent times after the start of the economic crisis in 2008. A better understanding of the influences on economic growth by the public and private sectors will help policy makers in the EU to allocate more efficiently the financial resources. Our research will follow two major paths. One will be concentrated on the impact of the variables at national level and another will try to understand the effects of public and private sectors at regional level. The result of the analysis ought to show the bigger impact of the private sector on growth compared with the influence of public investment.

Suggested Citation

  • Florin Teodor Boldeanu & Madalin Sebastian Ion, 2015. "The Influence Of Public And Private Sector Investment On Economic Growth In The European Union," Annals of University of Craiova - Economic Sciences Series, University of Craiova, Faculty of Economics and Business Administration, vol. 1(43), pages 219-228.
    • Handle: RePEc:aio:aucsse:v:1:y:2015:i:43:p:219-228
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    File URL: http://feaa.ucv.ro/AUCSSE/0043v1-022.pdf
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    References listed on IDEAS

    as
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    4. Lamartina Serena & Zaghini Andrea, 2011. "Increasing Public Expenditure: Wagner’s Law in OECD Countries," German Economic Review, De Gruyter, vol. 12(2), pages 149-164, May.
    5. Robert J. Barro & Xavier Sala-I-Martin, 1992. "Public Finance in Models of Economic Growth," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 59(4), pages 645-661.
    6. Stephen R. Bond, 2002. "Dynamic panel data models: a guide to micro data methods and practice," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 1(2), pages 141-162, August.
    7. Stephen Bond, 2002. "Dynamic panel data models: a guide to microdata methods and practice," CeMMAP working papers CWP09/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
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    More about this item

    Keywords

    public expenditure; public sector; private sector; economic growth; world governance index;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories

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