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Relative Effects Of Public And Private Investment On Cote D’Ivoire’S Economic Performance

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  • AKA, Bédia F

Abstract

This paper investigates the impact of public and private investment on Côte d’Ivoire’s economic performance (GDP growth) over the period 1969-2001, using an autoregressive-distributed lag (ARDL) Error Correction Model (ECM). The results shows that in the short run an increase in private investment by 1% enhance economic growth by 28%, while a 1% increase in public investment leads to only 7% increase in real GDP. In the long run nevertheless the impact of public investment on GDP growth has been higher than private investment, a 1% increase in private investment leads to 25% increase in GDP, while public investment impacts growth by 37%. On the other hand, a 1% increase in employment leads to 38% increase in long run GDP growth. The main findings indicate that while the short run efficiency of public capital can be further improved in Côte d’Ivoire, in the same time the efficiency of private investment can be improved in the long run.

Suggested Citation

  • AKA, Bédia F, 2007. "Relative Effects Of Public And Private Investment On Cote D’Ivoire’S Economic Performance," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 7(1).
    • Handle: RePEc:eaa:aeinde:v:7:y:2007:i:1_13
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    References listed on IDEAS

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    1. MD. Ramirez, 2000. "Public capital formation and labor productivity growth in Chile," Contemporary Economic Policy, Western Economic Association International, vol. 18(2), pages 159-169, April.
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    Cited by:

    1. Guych NURYYEV & Charles HICKSON, 2015. "Corruption Centralization, Investments, and Growth: Analysis of 62 countries for 1995-2007," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 15(1), pages 17-30.
    2. AKA, Bedia François, 2016. "Quantitative Impacts Of Basic Income Grant On Income Distribution In Cote D’Ivoire: Time To Change Our Societies," Revista Galega de Economía, University of Santiago de Compostela. Faculty of Economics and Business., vol. 25(1), pages 159-170.
    3. Garikai Makuyana & Nicholas M. Odhiambo, 2017. "Public and private investment and economic growth in Zimbabwe: An empirical test," Business and Economic Horizons (BEH), Prague Development Center, vol. 13(1), pages 60-76, March.
    4. Garikai Makuyana & Nicholas M. Odhiambo, 2019. "Public and private investment and economic growth in Malawi: an ARDL-bounds testing approach," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 32(1), pages 673-689, January.
    5. Makuyana, Garikai & Odhiambo, Nicholas Mbaya, 2017. "Public and private investment and economic growth in South Africa:An empirical investigation," Working Papers 22005, University of South Africa, Department of Economics.
    6. MAKUYANA, Garikai & ODHIAMBO, Nicholas M., 2018. "Public and Private Investment and Economic Growth in Zambia: A Dynamic Approach," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 71(4), pages 503-526.
    7. Mahmoud Khalid Almsafir & Zurina Mohammad Morzuki, 2015. "The Relationship between Investment and Economic Growth in Malaysia," Journal of Empirical Economics, Research Academy of Social Sciences, vol. 4(2), pages 116-126.

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    More about this item

    Keywords

    Public and Private investment; GDP Growth; ECM;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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