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The Impact of Public Investment on Economic Growth in Pakistan

Author

Listed:
  • Ejaz Ghani

    (Pakistan Institute of Development Economics, Islamabad.)

  • Musleh-Ud Din

    (Pakistan Institute of Development Economics, Islamabad.)

Abstract

This paper explores the role of public investment in the process of economic growth, in the context of Pakistan’s economy, using the vector autoregressive approach (VAR). Based on theoretical considerations, the model also includes private investment and public consumption besides public investment. The results show that growth is largely driven by private investment and that no strong inference can be drawn from the effects of public investment and public consumption on economic growth.

Suggested Citation

  • Ejaz Ghani & Musleh-Ud Din, 2006. "The Impact of Public Investment on Economic Growth in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 45(1), pages 87-98.
    • Handle: RePEc:pid:journl:v:45:y:2006:i:1:p:87-98
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    File URL: http://www.pide.org.pk/pdf/PDR/2006/Volume1/87-98.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Public Investment; Economic Growth;

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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