RELATIVE EFFECTS OF PUBLIC AND PRIVATE INVESTMENT ON COTE D’IVOIRE’S ECONOMIC PERFORMANCE

Bédia F AKA ()

Applied Econometrics and International Development, 2007, vol. 7, issue 1

Abstract: This paper investigates the impact of public and private investment on Côte d’Ivoire’s economic performance (GDP growth) over the period 1969-2001, using an autoregressive-distributed lag (ARDL) Error Correction Model (ECM). The results shows that in the short run an increase in private investment by 1% enhance economic growth by 28%, while a 1% increase in public investment leads to only 7% increase in real GDP. In the long run nevertheless the impact of public investment on GDP growth has been higher than private investment, a 1% increase in private investment leads to 25% increase in GDP, while public investment impacts growth by 37%. On the other hand, a 1% increase in employment leads to 38% increase in long run GDP growth. The main findings indicate that while the short run efficiency of public capital can be further improved in Côte d’Ivoire, in the same time the efficiency of private investment can be improved in the long run.

Keywords: Public and Private investment; GDP Growth; ECM (search for similar items in EconPapers)
JEL-codes: C22 C51 O47 (search for similar items in EconPapers)
View list of references

Downloads: (external link)
http://www.usc.es/~economet/journals1/aeid/aeid7113.pdf
Access restricted to subscribers and Pay Per View access through SSRN. Free on line subscription for universities from low income countries. More information at http://www.usc.es/economet/info.htm

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Ordering information: This journal article can be ordered from
http://www.usc.es/economet/info.htm

Access Statistics for this article

More articles in Applied Econometrics and International Development from Euro-American Association of Economic Development
Series data maintained by M. Carmen Guisan ().