Public Policy and Private Investment in Pakistan

Syed, Shabib Haider and Majeed, Muhammad Tariq (2007): Public Policy and Private Investment in Pakistan. Published in: The Forman Journal of Economic Studies , Vol. 3, (2007): pp. 100-110.

Abstract

This paper analyzes the importance of government policies in determining private investment in Pakistan. The empirical results show that public sector investment, changes in bank credit to the private sector and degree of capacity in the economy are playing an important role in the determination of private investment. The level of expected GDP also positively affected the private investment, which is consistent with flexible accelerator model. The results are also consistent with the mentioned hypothesis that public infrastructure investment is complimentary to private investment; whereas other kinds of public investment tend to be substitutes for private investment.

• Item Type: MPRA Paper
• Language: English
• Keywords: Private Investment, Public Policy, Pakistan
• Subjects: E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E22 - Investment ; Capital ; Intangible Capital ; Capacity; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E60 - General

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