Public and Private Corporate Investment: An Empirical Analysis of the "Crowding -in" Effects of Fiscal Policy in India

Venkat Hariharan Asha (), Ajay Ojha () and Lekha Chakraborty ()
Additional contact information
Venkat Hariharan Asha: Department of Economic Affairs, Ministry of Finance
Ajay Ojha: Department of Economic Affairs, Ministry of Finance
Lekha Chakraborty: National Institute of Public Finance and Policy

Working Papers from National Institute of Public Finance and Policy

Abstract: Using the high frequency data, the paper analyses the link between public investment and the private corporate investment in India for the post pandemic period. The results of ARDL models reinforced that there is no crowding out effects in India. The monetary variables including cost of credit - both long term and the short-term rates of interest - have been as significant in determining private corporate investment in the medium and long terms, which has crucial policy implications. The output gap uncertainties due to the global economic headwinds and geopolitical risks, cause lags in the responsiveness of private corporate investment to public investment.

Keywords: Public Investment; Infrastructure; Private Corporate Investment; Crowding -in effects; Fiscal policy; Public Sector (search for similar items in EconPapers)
JEL-codes: C32 E62 H6 (search for similar items in EconPapers)
Pages: 33
Date: 2025-06
New Economics Papers: this item is included in nep-fdg
Note: Working Paper 428, 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.nipfp.org.in/media/documents/WP_428_2025.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:npf:wpaper:25/428

Access Statistics for this paper

More papers in Working Papers from National Institute of Public Finance and Policy
Bibliographic data for series maintained by S.Siva Chidambaram ( this e-mail address is bad, please contact ).