{
  "title": "The Quality of Public Investment",
  "publication": "IMF Working Papers, July 1, 2009",
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  "summary": "This paper develops a growth model with specialized goods where inefficient and corrupt bureaucracies interact with the provision of public investment services in affecting the productivity of private capital, specialization, and growth.",
  "sections": [
    {
      "heading": "Summary and central contribution",
      "content": "- Develops a growth model with specialized goods where inefficient and corrupt bureaucracies interact with the provision of public investment services to affect:\n  - the productivity of private capital,\n  - specialization, and\n  - growth.\n- Provides potential explanations for contradictory empirical results on the effects of public investment found in the literature.\n- Explains the role of the quality of public infrastructure investment in creating a gap between rich and poor countries.\n- Policy implication emphasized: the link between public investment and growth depends critically on the quality and efficiency of public capital."
    },
    {
      "heading": "Model mechanisms and analytical focus",
      "content": "- Incorporates specialized goods production.\n- Models interactions between:\n  - inefficient and corrupt bureaucracies and\n  - provision of public investment services.\n- Examines how these interactions influence private capital productivity and specialization patterns, thereby affecting aggregate growth outcomes."
    },
    {
      "heading": "Key findings and interpretative results",
      "content": "- The model offers potential explanations for:\n  - contradictory empirical findings on public investment effects in prior literature, and\n  - the role of public infrastructure investment quality in widening income and productivity differences across countries.\n- From a policy perspective, the model suggests:\n  - quality and efficiency of public capital are critical determinants of whether public investment translates into higher growth."
    },
    {
      "heading": "Policy recommendations and implications",
      "content": "- Prioritize improving the quality and efficiency of public capital to strengthen the positive link between public investment and growth.\n- Address bureaucratic inefficiency and corruption as part of public investment strategy to enhance private capital productivity and favorable specialization.\n\n---\n\n Content in this bundle\n\n- wp09154 — References\n  - wp09154 — References (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp09154 — References (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/the-quality-of-public-investment-23110"
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    "Authors: Shankha Chakraborty, Era Dabla-Norris",
    "Published: July 1, 2009",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451873016.001",
    "Develops a growth model with specialized goods where inefficient and corrupt bureaucracies interact with the provision of public investment services to affect:",
    "Provides potential explanations for contradictory empirical results on the effects of public investment found in the literature.",
    "Explains the role of the quality of public infrastructure investment in creating a gap between rich and poor countries.",
    "Policy implication emphasized: the link between public investment and growth depends critically on the quality and efficiency of public capital.",
    "Incorporates specialized goods production.",
    "Models interactions between:",
    "Examines how these interactions influence private capital productivity and specialization patterns, thereby affecting aggregate growth outcomes.",
    "The model offers potential explanations for:",
    "From a policy perspective, the model suggests:",
    "Prioritize improving the quality and efficiency of public capital to strengthen the positive link between public investment and growth.",
    "Address bureaucratic inefficiency and corruption as part of public investment strategy to enhance private capital productivity and favorable specialization.",
    "**_wp09154 — References**"
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