this paper extends endogenous growth models through augmenting it with government budget and oil revenues as well as the effect of public investment efficiency on long run growth of private and government consumption and import for an oil producing economy. based on the extracted model, the optimal growth rate of government current expenditure (or consumption) has a positive relation with the e...

Pritha Mitra In India, the relationship between government investment and private investment is a controversial issue. Economic theory suggests that government investment, financed by borrowing, reduces the loanable funds available for private investment, driving up interest rates, and reducing the level of private investment. If, as Keynesians argue, the positive impact of increased government...

Public investment can enhance productivity and promote economic growth, foster societal wellbeing, support long-term policies. Government expenditures be considered investments if they are directed towards durable assets like transport energy infrastructure, healthcare education facilities, IT systems, defence intangible such as research development. often includes purchases needed to implement...

This paper presents empirical evidence that links private investment to rate of return differential, risk aversion, and several types of political and economic risk. Estimating private investment equation for a panel of 25 developing countries over 21 years yields the following results: (i) socio-political instability characterized by nonviolent protests promotes private investment while violen...

The relationship between inequality, investment, and government expenditure and their impact on economic growth in a panel of countries is empirically analyzed via a fixed effects, semiparametric model. The analysis demonstrates that the marginal impact of inequality on growth is highly nonlinear, and depends critically on both the levels of investment and government expenditure. In the absence...