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Interactions between Regional Public and Private Investment: Evidence from Japanese Prefectures

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  • Tomomi Miyazaki

    (Graduate School of Economics, Kobe University)

Abstract

This paper examines the effects of government investment on private sector capital investment by investigating Japanese prefecture data. Empirical results show that crowding-out effect is observed in some sectors especially in rural areas where the government had invested heavily before the 1990s. This suggests that public investment is not necessarily useful to stimulate the economic activities through private capital formation there.

Suggested Citation

  • Tomomi Miyazaki, 2016. "Interactions between Regional Public and Private Investment: Evidence from Japanese Prefectures," Discussion Papers 1608, Graduate School of Economics, Kobe University.
    • Handle: RePEc:koe:wpaper:1608
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    File URL: http://www.econ.kobe-u.ac.jp/RePEc/koe/wpaper/2016/1608.pdf
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    Cited by:

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    3. Kameda, Taisuke & Namba, Ryoichi & Tsuruga, Takayuki, 2021. "Decomposing local fiscal multipliers: Evidence from Japan," Japan and the World Economy, Elsevier, vol. 57(C).
    4. Sofia São Marcos & Sofia Vale, 2024. "Is there a nonlinear relationship between public investment and private investment? Evidence from 21 Organization for Economic Cooperation and Development countries," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(1), pages 887-902, January.
    5. Funashima, Yoshito & Ohtsuka, Yoshihiro, 2019. "Spatial crowding-out and crowding-in effects of government spending on the private sector in Japan," Regional Science and Urban Economics, Elsevier, vol. 75(C), pages 35-48.
    6. Kanazawa, Nobuyuki, 2021. "Public investment multipliers: Evidence from stock returns of the road pavement industry in Japan," Journal of Economic Dynamics and Control, Elsevier, vol. 133(C).

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    More about this item

    Keywords

    Regional public investment; Crowding-in/out effect; Sector investment;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

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