The public-private investment nexus in India: Evidence from a policy simulation approach

Q3 Economics, Econometrics and Finance

Economic Annals Pub Date : 2020-01-01 DOI:10.2298/eka2024101b

S. Bhat, Javed Ahmad Bhat, Taufeeq Ajaz

引用次数: 0

Abstract

This study investigates the influence of public investment on private investment in India, at both the aggregate and Sectoral levels and under two different modes of deficit financing – monetisation and commercial borrowing – in an eclectic macroeconometric modelling framework. Using Generalised Method of Moments (GMM), the two simulation exercises con-ducted in the study highlight the crowding-in effect of public investment on aggregate private investment, irrespective of the mode of financing. The favourable accelerator effect and the complementary effect are found to outweigh the deleterious interest effect in both simulation exercises. At the Sectoral level, public investment is found to most strongly and positively affect private investment in manufacturing, followed by agriculture, the service sector, and finally infrastructure. The impact of public invest-ment on the other sectors included in the model accords well with theoretical expec-tations.

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印度公私投资关系:来自政策模拟方法的证据

本研究在兼收并蓄的宏观计量经济学模型框架中，在总体和部门层面以及两种不同的赤字融资模式(货币化和商业借贷)下，调查了印度公共投资对私人投资的影响。使用广义矩量法(GMM)，研究中进行的两个模拟练习突出了公共投资对总私人投资的拥挤效应，而不管融资模式如何。在两种模拟中，均发现有利的加速效应和互补效应大于有害的兴趣效应。在部门层面，公共投资对制造业的私人投资影响最为强烈和积极，其次是农业、服务业，最后是基础设施。公共投资对模型中其他部门的影响符合理论预期。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Economic Annals Economics, Econometrics and Finance-Economics, Econometrics and Finance (all)

CiteScore

0.90

自引率

0.00%

发文量

审稿时长

18 weeks

期刊介绍： Economic Annals is an academic journal that has been published on a quarterly basis since 1955, initially under its Serbian name of Ekonomski anali (EconLit). Since 2006 it has been published exclusively in English. It is published by the Faculty of Economics, University of Belgrade, Serbia. The journal publishes research in all areas of economics. The Editorial Board welcomes contributions that explore economic issues in a comparative perspective with a focus on transition and emerging economies in Europe and around the world. The journal encourages the submission of original unpublished works, not under consideration by other journals or publications. All submitted papers undergo a double blind refereeing process. Authors are expected to follow standard publication procedures [Instructions to Authors], to recognise the values of the international academic community and to respect the journal’s Policy.