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Empirical studies on the relationship between public and private investment and GDP growth

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Abstract:

This study performs empirical studies on the interaction between public and private investment and GDP growth for Japan and the USA. Since the data for each country used show features that are quite different from each other, empirical methods of GMM (Generalized Method of Moments) and OLS (Ordinary Least squares) are accordingly applied to Japan and the USA, respectively. The empirical results suggest that both public and private investment make great contributions to Japanese economic growth, while the US private investment seems to play a much more significant role than public investment.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/00036840500392649

Affiliations: Osaka School of International Public Policy, Osaka University, 1-31 Machikaneyama-cho, Toyonaka City, Osaka 560-0043, Japan

Publication date: June 20, 2006

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