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Public Investment and GDP Growth in Developing and Advanced Countries: A Panel Data Analysis

Journal of Economics Bibliography

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Title Public Investment and GDP Growth in Developing and Advanced Countries: A Panel Data Analysis
 
Creator GOUMRHAR, Hicham;

Mohammed V University of Rabat, Applied Economics Lab, Phone: +212 616-555251, E-mail: hichamkgoumrhar@gmail.com  ORCID ID: 0000-0003-3205-5260


OUKHALLOU, Youssef; Mohammed V University – Rabat, Morocco President of the Moroccan Organization for Young Decision Makers (OMJD)
 
Subject GDP growth; Public investment; Crowding out; Panel data.
C33; H54; O47.
 
Description Abstract. This research paper examines the differences between developing and advanced countries in terms of public investment’s impact on economic growth. In this regard, we investigate whether or not the macroeconomic impact of government investment spending is tributary to the degree of private-public capital substitutability and the level of the capital-to-GDP ratio. In this perspective, we use a panel data model for two groups of countries that include respectively five advanced economies and five developing ones. Our study provides empirical evidence that public investment expenditures have a larger influence on GDP’s evolution in developing countries. Our results also suggest that public investment spending is relatively counterproductive in advanced economies, most likely because of high levels of crowding out; the latter are driven by public-private capital substitutability and the advanced position of these countries in terms of transitional dynamics. The analysis in this paper also sheds the light on efficiency, as a concept that is significantly linked to the level of corruption.Keywords. GDP growth, Public investment, Crowding out, Panel data.JEL. C33, H54, O47.
 
Publisher Journal of Economics Bibliography
 
Contributor —
 
Date 2017-03-28
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://www.kspjournals.org/index.php/JEB/article/view/1230
10.1453/jeb.v4i1.1230
 
Source Journal of Economics Bibliography; Vol 4, No 1 (2017): March; 77-86
2149-2387
 
Language eng
 
Relation http://www.kspjournals.org/index.php/JEB/article/view/1230/1221
 
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http://creativecommons.org/licenses/by-nc/4.0