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The Impact of Public Investment on Economic Growth in Pakistan

  • Ejaz Ghani

    (Pakistan Institute of Development Economics, Islamabad.)

  • Musleh-Ud Din

    (Pakistan Institute of Development Economics, Islamabad.)

This paper explores the role of public investment in the process of economic growth, in the context of Pakistan’s economy, using the vector autoregressive approach (VAR). Based on theoretical considerations, the model also includes private investment and public consumption besides public investment. The results show that growth is largely driven by private investment and that no strong inference can be drawn from the effects of public investment and public consumption on economic growth.

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File URL: http://www.pide.org.pk/pdf/PDR/2006/Volume1/87-98.pdf
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Article provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.

Volume (Year): 45 (2006)
Issue (Month): 1 ()
Pages: 87-98

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Handle: RePEc:pid:journl:v:45:y:2006:i:1:p:87-98
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  18. Kormendi, Roger C. & Meguire, Philip G., 1985. "Macroeconomic determinants of growth: Cross-country evidence," Journal of Monetary Economics, Elsevier, vol. 16(2), pages 141-163, September.
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  21. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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