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Empirical studies on the relationship between public and private investment and GDP growth

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  • Yang Zou

Abstract

This study performs empirical studies on the interaction between public and private investment and GDP growth for Japan and the USA. Since the data for each country used show features that are quite different from each other, empirical methods of GMM (Generalized Method of Moments) and OLS (Ordinary Least squares) are accordingly applied to Japan and the USA, respectively. The empirical results suggest that both public and private investment make great contributions to Japanese economic growth, while the US private investment seems to play a much more significant role than public investment.

Suggested Citation

  • Yang Zou, 2006. "Empirical studies on the relationship between public and private investment and GDP growth," Applied Economics, Taylor & Francis Journals, vol. 38(11), pages 1259-1270.
  • Handle: RePEc:taf:applec:v:38:y:2006:i:11:p:1259-1270
    DOI: 10.1080/00036840500392649
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    Cited by:

    1. Alberto Bucci & Chiara Del Bo, 2009. "On the interaction between public investment and private capital in economic growth," UNIMI - Research Papers in Economics, Business, and Statistics unimi-1092, Universitá degli Studi di Milano.
    2. Makuyana, Garikai & Odhiambo, Nicholas Mbaya, 2017. "Public and private investment and economic growth in Malawi:An ARDL-bounds testing approach," Working Papers 22003, University of South Africa, Department of Economics.
    3. Vitor Carvalho & Diogo Barbosa & Paulo Jorge Pereira, 2013. "The interaction between firms and Government in the context of investment decisions: a real options approach," EcoMod2013 5390, EcoMod.
    4. Makuyana, Garikai & Odhiambo, Nicholas Mbaya, 2017. "Public and private investment and economic growth in South Africa:An empirical investigation," Working Papers 22005, University of South Africa, Department of Economics.
    5. Barbosa, Diogo & Carvalho, Vitor M. & Pereira, Paulo J., 2016. "Public stimulus for private investment: An extended real options model," Economic Modelling, Elsevier, vol. 52(PB), pages 742-748.
    6. António Afonso & Miguel St. Aubyn, 2009. "Macroeconomic Rates Of Return Of Public And Private Investment: Crowding-In And Crowding-Out Effects," Manchester School, University of Manchester, vol. 77(s1), pages 21-39, September.
    7. repec:pdc:jrnbeh:v:13:y:2017:i:1:p:60-76 is not listed on IDEAS
    8. Chiara DEL BO, 2009. "Recent advances in public investment, fiscal policy and growth," Departmental Working Papers 2009-25, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    9. Garikai Makuyana & Nicholas M. Odhiambo, 2017. "Public and private investment and economic growth in Zimbabwe: An empirical test," Business and Economic Horizons (BEH), Prague Development Center, vol. 13(1), pages 60-76, March.
    10. Makuyana, Garikai & Odhiambo, Nicholas Mbaya, 2016. "Public and private investment and economic growth in Zambia: A dynamic approach," Working Papers 21377, University of South Africa, Department of Economics.

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