Munich Personal RePEc Archive

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.

[img]
Preview
PDF
MPRA_paper_57675.pdf

Download (306kB) | Preview

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.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.