How Does Public Investment Affect Economic Growth in HIPC? An Empirical Assessment

Marianna Belloc and Pietro Vertova ()

Department of Economics University of Siena from Department of Economics, University of Siena

Abstract: A better assessment of the impact of public investment on economic performance is crucial in order to design and implement effective fiscal policies for adjustment with growth in highly indebted poor countries. In this paper we investigate empirically the relationship between public investment, private investment and output, providing a dynamic econometric procedure on a selected group of Highly Indebted Poor Countries (HIPCs). Our results provide empirical support for both the crowding-in hypothesis and a positive effect of public investment on output.

Keywords: Fiscal adjustment; public investment; crowding-in; Highly Indebted Poor Countries (HIPCs). (search for similar items in EconPapers)
JEL-codes: E62 O23 (search for similar items in EconPapers)
Date: 2004-01
New Economics Papers: this item is included in nep-dev and nep-mac
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Citations: View citations in EconPapers (16)

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Persistent link: https://EconPapers.repec.org/RePEc:usi:wpaper:416

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