Government Investment and Follow-on Private Sector Investment in Pakistan, 1972-1995
Abstract
The possibility that government investment can stimulate private sector investment has long been suggested. Until recently, an appropriate model to test for the relationship in developing countries has been absent. In 1984, Blejer and Khan developed and estimated a model for 24 developing countries between 1971 and 1979. They found that higher rates of investment took place when the private sector took a large role in capital formation. This paper estimates a similar model for one developing country, Pakistan, for the period 1972 to 1995. Our results are broadly similar to those obtained by Blejer and Khan and we suggest ways for the Pakistan government to stimulate the private sector by selective types of public investment.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 1997
- Accession Number
- ADA527846
Entities
People
- Peter C. Frederiken
- Robert E. Looney
Organizations
- Naval Postgraduate School