Determinants of Private Investment in Pakistan

March 1, 1993

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper investigates the determinants of private investment in Pakistan with special emphasis on the impact of government investment. Using annual data for the period 1973/74-1991/92, it is estimated that private investment was positively correlated to GDP growth, to credit extended to the private sector, and to government investment. When government investment is disaggregated into Its infrastructural and noninfrastructural components, the latter is found to be negatively correlated with private investment.

Subject: Credit, Expenditure, Infrastructure, Money, National accounts, Private investment, Public investment spending

Keywords: Credit, determinant factor, disincentive impact, government infrastructure investment, government investment, Infrastructure, investment characteristic, investment determination function, investment equation, investment function, Private investment, Public investment spending, WP

Pages:
34
Volume:
1993
DOI:
https://doi.org/10.5089/9781451844863.001
Issue:
030
Series:
Working Paper No. 1993/030
Stock No:
WPIEA0301993
ISBN:
9781451844863
ISSN:
1018-5941

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