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Public Policy and Private Investment in Pakistan

Author

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  • Syed, Shabib Haider
  • Majeed, Muhammad Tariq

Abstract

This paper analyzes the importance of government policies in determining private investment in Pakistan. The empirical results show that public sector investment, changes in bank credit to the private sector and degree of capacity in the economy are playing an important role in the determination of private investment. The level of expected GDP also positively affected the private investment, which is consistent with flexible accelerator model. The results are also consistent with the mentioned hypothesis that public infrastructure investment is complimentary to private investment; whereas other kinds of public investment tend to be substitutes for private investment.

Suggested Citation

  • Syed, Shabib Haider & Majeed, Muhammad Tariq, 2007. "Public Policy and Private Investment in Pakistan," MPRA Paper 57675, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:57675
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    References listed on IDEAS

    as
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    Cited by:

    1. Thuy T. Dang & Anh D. Pham & Diem N. Tran, 2020. "Impact of Monetary Policy on Private Investment: Evidence from Vietnam’s Provincial Data," Economies, MDPI, vol. 8(3), pages 1-15, September.
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    More about this item

    Keywords

    Private Investment; Public Policy; Pakistan;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General

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