Determinants of Public and Private Investment An Empirical Study of Pakistan

Saghir, Rabia; Khan, Azra
February 2012
International Journal of Business & Social Science;2012, Vol. 3 Issue 4, p183
Academic Journal
This paper analyses the determinants of public and private investment in Pakistan using time series data for the period 1970-2010. By using co-integration and error correction the analysis shows that government investment negatively effect private investment which shows crowding out effect. In short run lagged change in government investment is significant and positive. The effect of aid on government investment is positive but insignificant in short run. Private investment has significant and positive impact on government investment.


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