Interaction of public and private investment in Southern Africa: a dynamic panel analysis

摘要

While the debate on the crowding-in-out effects of public investment on private investment largely seems to point towards a crowding-in effect in developing economies and the opposite in advanced economies, considerable evidence exists on the inconclusiveness of such findings across countries and regions. This study uses two investment models, Koyck’s flexible accelerator and Jorgenson’s neoclassical with error correction modified to empirically capture the structural and institutional characteristics of the Southern African region, to investigate crowding-in effects in one of the world’s most underdeveloped regions, Southern Africa. The study’s models reject the existence of crowding-in effects even when the public investment component of transport and communication is used. However, the study unveils macroeconomic uncertainty, market size, and capital availability as binding constraints on private investment in Southern Africa.View full textDownload full textJEL ClassificationsO55, O16, O11Keywordsinvestment, crowding-in, crowding-out, Southern Africa, dynamic panel analysis, neoclassical model, accelerator modelRelated var addthis_config = { ui_cobrand: "Taylor & Francis Online", services_compact: "citeulike,netvibes,twitter,technorati,delicious,linkedin,facebook,stumbleupon,digg,google,more", pubid: "ra-4dff56cd6bb1830b" }; Add to shortlist Link Permalink http://dx.doi.org/10.1080/02692171.2011.624500