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Determinants of Public Investment Effectiveness Evaluation in Unstable Macroeconomic Environment

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  • Benedykt OPALKA

    (SGH Warsaw School of Economics, Warszawa, Poland)

Abstract

Investments in the public sector may be characterized by a lower sensitivity to macroeconomic changes since their implementation is linked to the need to achieve certain social goals, so these investments are undertaken and implemented even in deteriorating economic conditions. However, this does not mean that the course of investment processes in the public sector is stable in a changing macroeconomic environment. The constrained investment financing capacity in public sector units is increasingly problematic. The purpose of the presented paper is to identify the changing conditions affecting the scope and approaches to measuring the effectiveness of investment projects in the public sector, not only in monetary terms, but also in social aspects. The research findings presented in the paper point to the role of current socio-economic factors in shaping decision-making processes, as well as to the principles and criteria for evaluating the impact of public spending in a situation of unstable economic development. The study presents an analysis of available methodologies and performance evaluation indicators, along with the potential for adapting or expanding the range of possible analytical and organizational solutions. The study also includes examples of changes in investment activity in the public sector at different levels of competence.

Suggested Citation

  • Benedykt OPALKA, 2023. "Determinants of Public Investment Effectiveness Evaluation in Unstable Macroeconomic Environment," RAIS Journal for Social Sciences, Research Association for Interdisciplinary Studies, vol. 7(2), pages 40-49, November.
    • Handle: RePEc:smo:jornl1:v:7:y:2023:i:2:p:40-49
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    References listed on IDEAS

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    1. Andreea Ocolișanu & Gabriela Dobrotă & Dan Dobrotă, 2022. "The Effects of Public Investment on Sustainable Economic Growth: Empirical Evidence from Emerging Countries in Central and Eastern Europe," Sustainability, MDPI, vol. 14(14), pages 1-25, July.
    2. Mr. Javier Kapsoli & Ms. Tewodaj Mogues & Ms. Genevieve Verdier, 2023. "Benchmarking Infrastructure Using Public Investment Efficiency Frontiers," IMF Working Papers 2023/101, International Monetary Fund.
    3. Victoria Wojcik & Harald Dyckhoff & Marcel Clermont, 2019. "Is data envelopment analysis a suitable tool for performance measurement and benchmarking in non-production contexts?," Business Research, Springer;German Academic Association for Business Research, vol. 12(2), pages 559-595, December.
    4. António Afonso & Ludger Schuknecht & Vito Tanzi, 2005. "Public sector efficiency: An international comparison," Public Choice, Springer, vol. 123(3), pages 321-347, June.
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