Public and Private Investment and Economic Development in Iraq (1970-2010)

Hussein, Jwan; Benhin, James

doi:10.7763/ijssh.2015.v5.550

Cited by 7 publications

(9 citation statements)

References 52 publications

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“…However, it does not have the opposite direction, meaning that in the short run, the increase in investment expenditures has no contribution to local economic growth. Third, Private investment has a positive impact on economic growth (consistent with the research results of Nguyen, Dang and Bui, Hussein & Benin, Phetsavong & Ichihashi, Su 6,18,[26][27][28] ). In terms of enhancing the province's investment environment, Dong Thap is one of the shining examples of the Mekong Delta and the entire nation.…”

Section: Discussionsupporting

confidence: 78%

Impacts of public spending on economic growth in Dong Thap province

Le,

Vang

2022

Sci. Tech.Dev. J. - Eco. Law Manag.

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The study examines the effect of public spending from many perspectives on economic growth and vice versa in Dong Thap province. The Granger causality theory and the VAR autoregressive vector model of real GDP (GDPR) were used to test the causal relationship between public spending and provincial economic growth. Time series data from 1995 to 2020 were collected from Dong Thap Provincial Statistics Office. The research results show that: aggregate public expenditure has no Granger relationship with GRDP but is significant in the opposite direction; GRDP has a positive effect on overall public spending -economic growth increases the scale of public spending; development investment spending has no Granger relationship with GRDP but recurrent spending has a positive effect on GRDP. However, in the opposite direction, GRDP does not have a Granger relationship with recurrent expenditure but has a Granger relationship with development investment spending. The study also found that private investment and growth in labor size have a positive effect on GRDP. The author has proposed a number of significant solution groups based on the investigation's findings. The first solution is to allocate budget resources so that the recurrent expenditure proportion can account for an increasing proportion in the structure of public expenditure. The second option is to create an environment that encourages private investment. For instance, perfecting mechanisms and policies on attracting private investment; socializing, attracting, and establishing favorable conditions for the private sector to participate in the delivery of public services; encouraging and assisting the private sector to make investments in cutting-edge research, development, and technology transfer. The third option is to put more of an emphasis on human resource development, with a particular emphasis on educating top-notch human resources to meet the province's development needs. In the upcoming years, boosting training and labor support services through procedures and policies as well as financial support from the budget will also have a significant positive impact on output volume.

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Section: Discussionsupporting

confidence: 78%

Impacts of public spending on economic growth in Dong Thap province

Le,

Vang

2022

Sci. Tech.Dev. J. - Eco. Law Manag.

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“…Their empirical findings revealed that, while both public and private investment boost production in the nations studied, the complementary impact of public investment on private investment differed by country. Hussein and Benhin (2015) looked at the impact of public and private investment on Iraqi economic growth from 1970 to 2010. The time series data was applied to cointegration and error correction methods.…”

Section: Empirical Literaturementioning

confidence: 99%

“…The impact of public investment and private investment on economic growth is long been a topic of debate in macroeconomics and development economics, and it has resurfaced in recent years. The influence among these two types of investment on economic growth and social environments is widely recognized (Hussein and Benhin, 2015). Since the dichotomy between public and private investment has an impact on economic growth, it is critical to comprehend the connections between the two.…”

Section: Introductionmentioning

confidence: 99%

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Crowding in or crowding out? Public Investment and Private Investment in South Africa: An ECM Approach

Pamba¹

2022

Preprint

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This study aims to explore the link between public investment and private investment in South Africa, using time series data spanning 40 years (1980–2020). Private investment is subdivided into credit to private sector (CPS) and foreign direct investment (FDI). Several econometric methodologies were used in the study, including the unit root test, cointegration test, and Error Correction Method (ECM). The Phillips-Perron (PP) test results point out that all the variables are stationary at levels with the exception of public investment (PI) which is stationary at first difference. The co-integration test reveals that the variables have a long-run equilibrium relationship. According to the findings of the ECM, public investment has a negative relationship with private investment (as measured by credit to private sector and foreign direct investment). The conclusion implies that in South Africa, public investment crowds out private investment. Other results revealed that, RGDP crowds in credit to private sector while crowding out foreign direct investment. Finally, the ECM findings show that government consumption expenditure crowds out credit to private sector and foreign direct investment. The residuals are homoskedastic and show no serial correlation, indicating that the model is adequate, according to the test for adequacy.

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“…The higher the interest rate and inflation, the lower private investment. While, Hussein and Benhin (2015) used Co-integration and error correction models to identify public and private investment and Economic Development in Iraq based on a neoclassical growth framework covered the period from 1970 to 2010. They found that in the long run, private investment, public investment, growth in the labour force and growth in oil revenues affect real gross domestic product (GDP) positively and statistically significant.…”

Section: Literature Reviewmentioning

confidence: 99%

Private Sector Investment and Economic Growth in Palestine

Abdaljawwad¹,

Sarmidi

2018

UMRAN

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This study examines the impact of private sector investment on economic growth in Palestine using quarterly time series data from 1990-2015. Multiple regression and co-integration methods are employed to analyse the data. The objectives of this study are to analyse the trends of private investment and economic growth in Palestine from 1990-2015 and to examine the impact of private sector investment on economic. Being a time series data, to avoid spurious regression results, the first step is to test for the stationarity of the data by using Augmented Dickey-Fuller unit root test. Then ordinary least square (OLS) regression technique is used to estimate of each independent variable effect on the dependent variable. Test the stationary of the error term is done to test the long run co-integration among variables. The result of stationarity and normality test will reveal that the model is fairly well specified and could be used for policy analysis or not. The co-integration test result will indicate that private sector investment and economic growth have a long run significant effect on one another. The unit root tests, which conducted, confirm that variables are stationary in first difference and the co-integration tests also confirm the existence of long term relationship between the variables. The findings of the study concluded that there exist a short-run and long run relationship between private sector investment and economic growth in Palestine. This study recommends the Palestinian government to promote and encourage both domestic and foreign direct investment. The investment policy should be more transparent, attractive and competitive

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Public and Private Investment and Economic Development in Iraq (1970-2010)

Cited by 7 publications

References 52 publications

Impacts of public spending on economic growth in Dong Thap province

Impacts of public spending on economic growth in Dong Thap province

Crowding in or crowding out? Public Investment and Private Investment in South Africa: An ECM Approach

Private Sector Investment and Economic Growth in Palestine

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