Impact of Public Investment on Economic Growth

Ambar Rabnawaz () and Rana Muhammad Sohail Jafar

MPRA Paper from University Library of Munich, Germany

Abstract: The study examines the relationship between Gross domestic product and public investment. Time series data for empirical investigation covers the period 1980-2009. The data has collected from Pakistan bureau of Statistics, State bank of Pakistan (SBP) and Stockholm International Peace Research Institute (SIPRI). Empirical results show, there is a positive relationship between GDP and public investment in short run. The increase in GDP causes a rapid increase in public investment. Granger causality test apply to check the causality. Results of test show that bi-causal relationship exists between GDP and public investment. Causality runs from GDP to public investment and similarly, from public investment to GDP.

Keywords: Public investment; economic growth; GDP (search for similar items in EconPapers)
JEL-codes: H3 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-pbe
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Citations: View citations in EconPapers (4)

Published in South Asia Journal of Multidisciplinary Studies 8.1(2015): pp. 62-75

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:70377

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