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Structural Cointegration Analysis of Private and Public Investment

Author

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  • Rosemary Rossiter

    (Department of Economics, Ohio University, U.S.A.)

Abstract

A structural cointegration approach is used to investigate the relationship between public and private investment, based on dataseries which include software in the definitions of investment. Empirical evidence for equipment suggests crowding out. However structures shows crowding in, supporting the infrastructure hypothesis.

Suggested Citation

  • Rosemary Rossiter, 2002. "Structural Cointegration Analysis of Private and Public Investment," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 1(1), pages 59-68, April.
    • Handle: RePEc:ijb:journl:v:1:y:2002:i:1:p:59-68
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    References listed on IDEAS

    as
    1. Evans, Paul & Karras, Georgios, 1994. "Is government capital productive? Evidence from a panel of seven countries," Journal of Macroeconomics, Elsevier, vol. 16(2), pages 271-279.
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    5. Lutkepohl, Helmut & Reimers, Hans-Eggert, 1992. "Impulse response analysis of cointegrated systems," Journal of Economic Dynamics and Control, Elsevier, vol. 16(1), pages 53-78, January.
    6. Koop, Gary & Pesaran, M. Hashem & Potter, Simon M., 1996. "Impulse response analysis in nonlinear multivariate models," Journal of Econometrics, Elsevier, vol. 74(1), pages 119-147, September.
    7. Aschauer, David Alan, 1989. "Does public capital crowd out private capital?," Journal of Monetary Economics, Elsevier, vol. 24(2), pages 171-188, September.
    8. Demetriades, Panicos O & Mamuneas, Theofanis P, 2000. "Intertemporal Output and Employment Effects of Public Infrastructure Capital: Evidence from 12 OECD Economics," Economic Journal, Royal Economic Society, vol. 110(465), pages 687-712, July.
    9. Alicia H. Munnell, 1992. "Policy Watch: Infrastructure Investment and Economic Growth," Journal of Economic Perspectives, American Economic Association, vol. 6(4), pages 189-198, Fall.
    10. Terence C. Mills, 1998. "Recent Developments in Modelling Nonstationary Vector Autoregressions," Journal of Economic Surveys, Wiley Blackwell, vol. 12(3), pages 279-312, July.
    11. Buiter, Willem H., 1977. "`Crowding out' and the effectiveness of fiscal policy," Journal of Public Economics, Elsevier, vol. 7(3), pages 309-328, June.
    12. Lynde, Catherine & Richmond, James, 1992. "The Role of Public Capital in Production," The Review of Economics and Statistics, MIT Press, vol. 74(1), pages 37-44, February.
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    Cited by:

    1. Ghassan, Hassan B. & AlDehailan, Salman, 2009. "اختبار التكامل المشترك غير الخطي بين الاستثمار الحكومي والاستثمار الخاص في الاقتصاد السعودي [Test of Non Linear Cointegration between Government Investment and Private Investment in Saudi Arabia Economy]," MPRA Paper 56376, University Library of Munich, Germany, revised 04 Dec 2009.
    2. Muyambiri, Brian & Chiwira, Oscar & Enowbi Batuo, Michael & Chiranga, Ngonidzashe, 2010. "The Causal Relationship between Private and Public Investment in Zimbabwe," MPRA Paper 26671, University Library of Munich, Germany.
    3. Ghassan, Hassan B., 2011. "Public and Private Investment in Saudi Economy: Evidence from Weak Exogeneity and Bound Cointegration Tests," MPRA Paper 56537, University Library of Munich, Germany.
    4. Hassan B. GHASSAN & Hassan R. ALHAJHOJ, 2012. "Bound Cointegration Test on Private Investment’s Equation: Evidence from Saudi Economy," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 12(1).
    5. Abdul Rashid, 2005. "Public / Private Investment Linkages: A Multivariate Cointegration Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 44(4), pages 805-817.
    6. Abdul Rashid, 2006. "Public-Private Investment Linkage in Pakistan," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 7(2), pages 219-230, September.
    7. Russell E. Triplett & Nilufer Ozdemir & Paul M. Mason, 2022. "Structural Change in the Investment Function," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 46(1), pages 220-236, January.

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    More about this item

    Keywords

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    JEL classification:

    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E69 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Other

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