Public Infrastructure Investment, Renewed Economic Growth, and the U.S. Fiscal Position

2012 ◽  
Author(s):  
Robert C. Hockett ◽  
Robert H. Frank
Keyword(s):  
Economic Growth ◽  
Infrastructure Investment ◽  
Public Infrastructure ◽  
The U.S

scholarly journals Public and Private Infrastructure Investment and Economic Growth in Pakistan: An Aggregate and Disaggregate Analysis

2019 ◽  
Vol 11 (12) ◽  
pp. 3359 ◽  
Author(s):  
Javid
Keyword(s):  
Economic Growth ◽  
Private Investment ◽  
Ordinary Least Squares ◽  
Policy Implications ◽  
Infrastructure Investment ◽  
Public Infrastructure ◽  
Reverse Causality ◽  
Public And Private ◽  
Infrastructure Investments ◽  
The Impact

This study investigates the relationship between infrastructure investment and economic growth at the aggregate and sectoral levels, namely, the industrial, agriculture, and services sectors for Pakistan over the period from 1972 to 2015. In contrast to earlier literature, we make a comparative analysis of the different composition of infrastructure investments, including public versus private investment and infrastructure investment in sub-sectors such as in power, roads, and telecommunication sectors. The long-run relationship is estimated using fully modified ordinary least squares (FMOLS) to address the problem of reverse causality. The main conclusion of this study is that both public and private infrastructure investments have positive but different effects on economic growth. In other words, the marginal productivities of private and public infrastructure investments differ across the different sectors of the economy. In most of the cases, public infrastructure investment has a larger impact on economic growth than private infrastructure investment. Two important policy implications emerge from this study, as follows: (1) The different elasticity estimates can be used by policy makers to quantify the impact of policies targeted at the specific sector and (2) the government should develop an enabled policy environment to attract private investment, with the consideration of structural characteristics of the various sectors. The involvement of the private sector in the provision of infrastructure would help to control the tight budgetary situation.

Impact of Public and Private Infrastructure Investment on Economic Growth: Evidence from India

2020 ◽  
Vol 12 (2) ◽  
pp. 119-138
Author(s):  
Nishija Unnikrishnan ◽  
Thomas Paul Kattookaran
Keyword(s):  
Economic Growth ◽  
Public Investment ◽  
Impulse Response Function ◽  
Decomposition Analysis ◽  
Private Investment ◽  
Infrastructure Investment ◽  
Public Infrastructure ◽  
Public And Private ◽  
Long Run ◽  
The Impact

Literature presents contradictory views regarding the impact of public and private investment on the economic growth of a country. India being a developing country, where the major share of investment is by public sector, the question which props up is what among public and private investment is contributing more towards the economic growth of the country. In this framework, the gross domestic product (GDP) can be fairly explained as a function of public infrastructure investment and private infrastructure investment. Johansen’s co-integration was used to test the long-run relationship between the variables over the period from 1961–1962 to 2016–2017. A vector error correction model (VECM) along with an impulse response function and variance decomposition analysis was done to measure the impact of public infrastructure investment and private infrastructure investment on the GDP. Based on the empirical evidence discussed earlier, it was evident that both public and private infrastructure investments have a significant impact on the economic growth of the nation. Findings which came up in this study correlate to majority findings of past literature that, when compared with public investment, it is private investment which is capable of giving a better impetus to economic growth.

scholarly journals The role of foreign investment in U.S. infrastructure: opportunities and challenges ahead

2020 ◽  
Vol 9 (3) ◽  
pp. 157-166
Author(s):  
Iordanis Petsas ◽  
Sofia M Vidalis
Keyword(s):  
Infrastructure Investment ◽  
Public Infrastructure ◽  
Sovereign Wealth Funds ◽  
The Public ◽  
New Construction ◽  
Useful Life ◽  
American Society ◽  
The U.S

The U.S. infrastructure has been issued a grade of D+ from the American Society of Civil Engineers because of the low funding for new construction, maintenance, and repair. It is now reaching the end of its useful life and cost estimates have reached as high as $3.6-trillion. The public infrastructure investment is at 2.4% of GDP, which is half of what it was 50-years ago. The U.S. has explored new ways to finance its infrastructure because of funding uncertainty. Investments such as, pensions, foreign investments, and sovereign wealth funds, manage trillions in assets and are forecasted to grow. This paper presents an overview in infrastructure funding and identifies possible approaches in addressing long-term financial needs with foreign capital partnership.

Introduction

2019 ◽  
pp. 1-16
Author(s):  
William G. Gale
Keyword(s):  
Economic Growth ◽  
The United States ◽  
Living Standards ◽  
Future Generations ◽  
Public Infrastructure ◽  
The Future ◽  
Fiscal Balance ◽  
The Government ◽  
Economic Future ◽  
The U.S

Even as the U.S. economy hums along, problems loom in the future. Government debt is growing along an unsustainable path, potentially mortgaging the country’s economic future. At the same time, after several decades of stagnating wages and living standards for much of the population, the nation faces increasing needs to invest in education and healthcare, and to bolster public infrastructure and research. How can the United States meet both today’s needs and tomorrow’s obligations? This book offers solutions resting on five guideposts. First, facts and evidence should play a key role in policy analysis and choices . Second, public policy should reflect our values as a people, including freedom, fairness, opportunity, and individual and social responsibility—toward one another, between rich and poor, and from generation to generation. Third, both the private sector and the government can—and must—be part of the solution to our problems. Fourth, taxes and spending are inextricably linked, and policymakers should consider them together. Fifth, we should focus on realistic solutions. The proposals offered here have three core themes: control entitlement spending; invest in the future; and raise and reform taxes. Taken together, the proposals would restore fiscal balance, boost economic growth, reduce economic inequality, improve economic mobility, and raise living standards for future generations.

scholarly journals FISCAL POLICY AND ECONOMIC DEVELOPMENT

2009 ◽  
Vol 13 (4) ◽  
pp. 450-476 ◽  
Author(s):  
Alexandros Mourmouras ◽  
Peter Rangazas
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Fiscal Policy ◽  
Developing Economies ◽  
Relative Size ◽  
Developed Countries ◽  
Infrastructure Investment ◽  
Public Infrastructure ◽  
Size Of Government ◽  
Economic Growth Rates

This paper offers possible explanations for three generally observed facts about fiscal policy and development: (F1) the relative size of government increases as an economy develops, (F2) the rise in government and taxation are associated with rising or constant economic growth rates, and (F3) today's developing countries have larger government sectors than today's developed countries had at similar stages of development. The explanations for these facts are based on the structural transformation from traditional to modern production, rising public infrastructure investment, and less democratic governments in many of today's developing economies.

scholarly journals Infrastructure Investment and Regional Economic Growth: Evidence from Yangtze River Economic Zone

Land ◽  
2021 ◽  
Vol 10 (3) ◽  
pp. 320
Author(s):  
Jinrui Zhang ◽  
Ruilian Zhang ◽  
Junzhuo Xu ◽  
Jie Wang ◽  
Guoqing Shi
Keyword(s):  
Economic Growth ◽  
Capital Stock ◽  
Yangtze River ◽  
Regional Economic Growth ◽  
Infrastructure Investment ◽  
The Yangtze River ◽  
Public Infrastructure ◽  
Regional Economic ◽  
Different Types ◽  
Economic Zone

To better understand the impacts of infrastructure investment on economic growth and, we used Cobb-Douglas production function model to develop the stock of public infrastructure capital into the economic growth model. It applies spatial panel data model effect analysis to statistical data of the Yangtze River Economic Zone with 131 cities from 2003 to 2016 and investigates the relationship between different types of public infrastructure capital stock and regional economic growth in different periods. The empirical results show that (1) the economic growth of the cities in the Yangtze River Economic Zone has characteristics of significant spatial dependence, the degree and significance of spatial dependence are gradually declining, and the spatial agglomeration of the economic growth in the cities in the region is relatively stable. (2) Different types of public infrastructure capital stock have distinct spatial effects on regional economic growth. The capital stock of energy infrastructure significantly promotes global economic growth. The capital stock of transportation infrastructure significantly stimulates the local economic growth and inhibits the economic growth of the adjacent areas. The capital stock of water-related infrastructure restrains local economic growth and promotes economic growth in adjacent areas. These findings indicate that increasing investment in public infrastructure development in the Yangtze River Economic Zone remains an effective measure to promote regional economic growth. Under the premise of limited resources, taking full account of the effects of various types of investment can promote the mutual benefit of the economies in the region and effectively achieve the strategic objectives for the Yangtze River Economic Zone.

PENGARUH PEMBANGUNAN INFRASTRUKTUR TERHADAP PDRB DI PROVINSI INDONESIA

Wahana ◽  
2019 ◽  
Vol 22 (1) ◽  
pp. 15-27
Author(s):  
Suripto Suripto ◽  
Eva Dwi Lestari
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Panel Data ◽  
Infrastructure Investment ◽  
Water Infrastructure ◽  
Infrastructure Development ◽  
Road Infrastructure ◽  
Health Infrastructure ◽  
Spatial Coverage ◽  
The Government

Economic growth is one indicator to measure  the success of economic development in a country. Economic development is closely related to infrastructure. Infrastructure development will have an impact on economic growth both directly and indirectly. Therefore, the role of the government in determining infrastructure development policies is very important to increase economic growth in Indonesia. The purpose of this study is to determine the effect of infrastructure on economic growth in Indonesia including road infrastructure, electricity infrastructure, investment, water infrastructure, education infrastructure and health infrastructure in Indonesia in 2015-2017.The analytical tool used in this study is panel data regression with the approach of Fixed Effect Model. The spatial coverage of this study is all provinces in Indonesia, namely 34 provinces, with a series of data from 2015 to 2017 with a total of 102 observations. The data used is secondary data obtained from BPS Indonesia.The results of the study show that (1) the road infrastructure variables have a negative and not significant effect on GDRP. (2) electrical infrastructure variables have a negative and not significant effect on GDRP. (3) investment variables have a positive and significant effect on GDRP. (4) water infrastructure variables have a positive and not significant effect on GDRP. (5) educational infrastructure variables have a positive and not significant effect on GDRP. (6) health infrastructure variables have a positive and significant effect on GDRP. Keywords: development, infrastructure, investment, GDRP, panel data

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