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Impact of Investments in Public Infrastructures on Economic Performance and Private Investment in Developing Countries: A Case Study for Tunisia

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  • Samir Saidi
  • Sami Hammami

Abstract

This article aims to evaluate the impact of different categories of investments in public infrastructures on economic growth and private investment in Tunisia over the period 1975-2014. By using the generalized method of moments, we estimate a simultaneous equations model containing a growth equation and a private investment equation. In the empirical study, we have introduced both economic and social infrastructures. The results demonstrate that in the two cases, the investments in public infrastructures affect positively and strongly the growth and private investment. The experience from Tunisia suggests that it is necessary to adopt economic policies that develop the physical infrastructures and improve the quality of human capital for sustainable economic growth in developing countries.

Suggested Citation

  • Samir Saidi & Sami Hammami, 2017. "Impact of Investments in Public Infrastructures on Economic Performance and Private Investment in Developing Countries: A Case Study for Tunisia," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 20(63), pages 126-146, March.
    • Handle: RePEc:rej:journl:v:20:y:2017:i:63:p:126-146
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    Cited by:

    1. Samir, Saidi & Shahbaz, Muhammad & Akhtar, Pervaiz, 2018. "The Long-Run Relationship between Transport Energy Consumption and Transport Infrastructure on Economic Growth in MENA Countries," MPRA Paper 85037, University Library of Munich, Germany, revised 06 Mar 2018.
    2. Samir Saidi & Sami Hammami, 2018. "Do Transport Infrastructures Promote the Foreign Direct Investments Attractiveness? Empirical Investigation from Four North African Countries," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 21(67), pages 110-125, March.
    3. Saidi, Samir & Shahbaz, Muhammad & Akhtar, Pervaiz, 2018. "The long-run relationships between transport energy consumption, transport infrastructure, and economic growth in MENA countries," Transportation Research Part A: Policy and Practice, Elsevier, vol. 111(C), pages 78-95.

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    More about this item

    Keywords

    economic growth; private investment; economic infrastructures; social infrastructures; simultaneous equations model.;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • L9 - Industrial Organization - - Industry Studies: Transportation and Utilities
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

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