The impact of public investment on private investment in Mexico, 1980-2007

Even though there is a growing consensus in the existing literature on the positive effect that public investment generates for economic growth, its impact on private investment is by no means a settled issue. This study seeks to determine empirically the relation between these two variables for the...

Descripción completa

Detalles Bibliográficos
Autor: Fonseca Hernández, Felipe de Jesús
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2009
País:México
Institución:EL COLEGIO DE MÉXICO
Repositorio:Estudios Económicos de El Colegio de México
Idioma:español
OAI Identifier:oai:oai.estudioseconomicos.colmex.mx:article/125
Acceso en línea:https://estudioseconomicos.colmex.mx/index.php/economicos/article/view/125
Access Level:acceso abierto
Palabra clave:public investment
private investment
crowding in effect
crowding out effect
C32
E22
inversión pública
inversión privada
efecto complementario
efecto desplazamiento
Descripción
Sumario:Even though there is a growing consensus in the existing literature on the positive effect that public investment generates for economic growth, its impact on private investment is by no means a settled issue. This study seeks to determine empirically the relation between these two variables for the Mexican economy during the 1980-2007 period. The results of dynamic estimations yield a partial crowding out of public investment in the short run, while, in the long run, it exerts a weak and marginal complementarity effect on private investment.