Skip to content
Research Article Open access CC BY 4.0

The Effect of Public Investment on Private Investment in Kenya

Gideon Mukui, Japheth Awiti, Joseph Onjala

Journal of Economics, Management and Trade · pp. 53–63 · Published 22 Jul 2023

10.9734/jemt/2023/v29i91127

Abstract

Public investment largely influences the socio-economic development of a country despite inefficiency concerns. A strong private sector is poised to cause GDP growth due to the efficient management of the resources compared to an economy dominated by the public sector. Nevertheless, public spending pattern influences socio-economic economic activities and welfare dynamics of a country. However, high levels of government activities could crowd-out private investment due to the competition for the scarce financial resources in the economy. This paper sought to analyze the effect of public investment on private investment in Kenya using a vector error correction model. The findings showed a strong positive impact of public investment on private investment in Kenya.

Public investment private investment vector error correction model

References (30)

  1. 1 Macroeconomics of Unbalanced Growth: The Anatomy of Urban Crisis [DOI]
  2. 2 Does public capital crowd out private capital? [DOI]
  3. 3 The general equilibrium effects of fiscal policy: Estimates for the Euro area [DOI]
  4. 4 Is financial inclusion good for bank stability? International evidence [DOI]
  5. 5 Remittances, financial development and economic growth in Africa [DOI]
  6. 6 Informality, growth, and development in Africa [DOI]
  7. 7 A ‘Private-sector Success Story’? Uncovering the Role of Politics and the State in Kenya’s Horticultural Export Sector [DOI]
  8. 8 Crowding-out and crowding-in effects of the components of government expenditure [DOI]
  9. 9 Capital flight and the uncertainty of government policies [DOI]
  10. 10 The Impact of Public Investment on Economic Growth in Pakistan [DOI]
  11. 11 Public spending, public governance and economic growth at the Vietnamese provincial level: A disaggregate analysis [DOI]
  12. 12 Money Banking and Financial Markets
  13. 13 Empirical studies on the relationship between public and private investment and GDP growth [DOI]
  14. 14 Democracy, Globalization and Private Investment in Ghana [DOI]
  15. 15 The role of public and private transport infrastructure capital in economic growth. Evidence from Pakistan [DOI]
  16. 16 Fiscal Deficit and Economic Growth Nexus in India: A Simultaneous Error Correction Approach [DOI]
  17. 17 Investment, Interest Rates, and the Effects of Stabilization Policies [DOI]
  18. 18 Effects of government spending on private investment [DOI]
  19. 19 Why does Public Investment Fail to Raise Economic Growth? The Role of Corruption [DOI]
  20. 20 The Determinants of Private Fixed Investment and the Relationship between Public and Private Capital Accumulation in Turkey [DOI]
  21. 21 Debt, Corruption and Investment in East Africa: A Panel ARDL Analysis [DOI]
  22. 22 Do Public Expenditure and Macroeconomic Uncertainty Matter to Private Investment? Evidence from Pakistan [DOI]
  23. 23 Public versus private investment in economic growth of Bangladesh: an econometric analysis [DOI]
  24. 24 On the interaction between public and private capital in economic growth [DOI]
  25. 25 Keynes, Economic Development and the Developing Countries [DOI]
  26. 26 Government Expenditures and Private Investment: Evidence from Turkey
  27. 27 A SENSITIVITY ANALYSIS OF CROSS-COUNTRY GROWTH REGRESSIONS
  28. 28 Development macroeconomics [DOI]
  29. 29 South Asia’s sustained financial development and the role of remittance: An empirical analysis [DOI]
  30. 30 Growth and investment : empirical evidence at macro and firm level

Cited by 1

Article metrics

Real usage data collected on this platform.

58

Page views

0

PDF downloads

31

Outbound clicks

1

Citations

Views over time

Views by country

Approximate, from request IP at view time — not citizenship or institution. Countries with fewer than 5 views are grouped as "Other".

Traffic sources

Referring site, by host.

Views and downloads exclude known bots/crawlers. Citations combines this platform's own DOI-resolved index with each external source's own reported total — see Cited by above for individually listed citing works. Last refreshed 0 seconds ago.