EconPapers    
Economics at your fingertips  
 

Public / Private Investment Linkages: A Multivariate Cointegration Analysis

Abdul Rashid ()

The Pakistan Development Review, 2005, vol. 44, issue 4, 805-817

Abstract: The link between public and private investment is investigated using annual data of the period from 1964–65 to 2004-05. The estimates based on structural cointegration approach indicate that both are cointegrated and public investment crowds in private investment. The study then used the Harris, et al. (2003) test to identify whether the existing cointegration vector is stationary or heteroscedastic. The findings of the analysis suggest that private investment can be enhanced by increasing public expenditures in infrastructure. The results of this study support the complementarity hypothesis, which states that stock of public capital crowds in private capital accumulation by increasing the return to private capital in

Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
http://www.pide.org.pk/pdf/PDR/2005/Volume4/805-817.pdf (application/pdf)

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

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pid:journl:v:44:y:2005:i:4:p:805-817

Access Statistics for this article

More articles in The Pakistan Development Review from Pakistan Institute of Development Economics Contact information at EDIRC.
Bibliographic data for series maintained by Khurram Iqbal ().

 
Page updated 2018-08-12
Handle: RePEc:pid:journl:v:44:y:2005:i:4:p:805-817