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Relative effects of public versus private investment spending on economic efficiency and growth in developing countries

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  • M. O. Odedokun

Abstract

This study investigates the initial and long-run effects of public investment expenditure on economic growth, especially as compared with private investment. Annual data over 1970-90 for 48 developing countries form the basis of the empirical analysis. Our findings suggest that infrastructural public investment facilitates private investment, especially in the long-run. It also promotes economic growth and efficiency whereas non-infrastructural investment does the reverse. Also, long-term effects of public investment tend to be much more positive than short-term ones on growth; efficiency and private investments

Suggested Citation

  • M. O. Odedokun, 1997. "Relative effects of public versus private investment spending on economic efficiency and growth in developing countries," Applied Economics, Taylor & Francis Journals, vol. 29(10), pages 1325-1336.
    • Handle: RePEc:taf:applec:v:29:y:1997:i:10:p:1325-1336
    DOI: 10.1080/00036849700000023
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