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Public Investment Efficiency and Sectoral Economic Growth in Pakistan

Public Investment Efficiency and Sectoral Economic Growth in Pakistan
Author: Ahmed, Qazi Masood
Publisher: Intl Food Policy Res Inst
Total Pages: 39
Release:
Genre: Social Science
ISBN:

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This paper compares the effects of aggregate and sectoral public investments on sectoral private investment, output, and employment. We estimate the elasticities of private investment with respect to aggregate and sectoral public investments to find crowding-out or crowding-in phenomena in Pakistan. The study also reveals the changes in labor absorption or replacement due to additional capital and the effects on output. Our data covers eight sectors of the Pakistan economy and uses annual time series data from 1964 to 2011. This study uses vector autoregressive (VAR) techniques, as applied by Pereira (2000, 2001), which allows measuring the dynamic feedback effects among the variables.


Investing in Public Investment

Investing in Public Investment
Author: Mr.Chris Papageorgiou
Publisher: International Monetary Fund
Total Pages: 46
Release: 2011-02-01
Genre: Business & Economics
ISBN: 1455217891

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This paper introduces a new index that captures the institutional environment underpinning public investment management across four different stages: project appraisal, selection, implementation, and evaluation. Covering 71 countries, including 40 low-income countries, the index allows for benchmarking across regions and country groups and for nuanced policy-relevant analysis and identification of specific areas where reform efforts could be prioritized. Potential research venues are outlined.


Infrastructure and Economic Growth in Asia

Infrastructure and Economic Growth in Asia
Author: John Cockburn
Publisher: Springer
Total Pages: 156
Release: 2013-12-05
Genre: Business & Economics
ISBN: 3319031376

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Public spending on infrastructure plays an important role in promoting economic growth and poverty alleviation. Empirical studies unequivocally show that under-investment in infrastructure limit economic growth. At the same time, numerous other studies have shown that investment in infrastructure can be a highly effective tool in fighting poverty reduction1. In that context, the financing of infrastructure has been a critical element of most economic growth and poverty reduction strategies in developing countries, since the start of this millennium. This book provides a comparative analysis of the aggregate and sectoral implications of higher spending on infrastructure in three very different Asian countries: China, Pakistan, and the Philippines. Particular attention is paid to the role of alternative financing mechanisms for increasing public infrastructure investment, namely distortionary and non-distortionary means of financing. The book will be of interest to scholars and policy-makers concerned with economic growth in developing countries.


OECD Public Governance Reviews Integrity Framework for Public Investment

OECD Public Governance Reviews Integrity Framework for Public Investment
Author: OECD
Publisher: OECD Publishing
Total Pages: 95
Release: 2016-02-29
Genre:
ISBN: 9264251766

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Public investment, and particularly infrastructure investment, is important for sustainable economic growth and development as well as public service provision. However, it is also vulnerable to capture and corruption.


Successful Transitions from Public to Private-Sector Led Growth: Lessons for Benin

Successful Transitions from Public to Private-Sector Led Growth: Lessons for Benin
Author: Aissatou Diallo
Publisher: International Monetary Fund
Total Pages: 28
Release: 2021-12-03
Genre: Business & Economics
ISBN: 1589068548

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Many Sub-Saharan African (SSA) countries, like Benin, have scaled up public investment during the last decade. Such a strategy contributed to the improvement of infrastructure, but also to a build-up of debt vulnerabilities. Looking forward, the planned fiscal consolidation will result in some restraint of public spending, and, in particular, public investment. In this context, maintaining or even raising the region’s economic growth will require an offset by the private sector. The analysis draws lessons from countries that have successfully transitioned from public investment to private investment-led growth using a global sample starting in the mid-1980s. These lessons highlight policies that have been crucial in fostering a rebound of private investment in the wake of a contraction of public investment. The analytical framework proposed by Hausman, Rodrik and Velasco (2005) is used to identify and classify such policies. Finally, the paper analyses how the identified policies could help Benin achieving a smooth transition from public to private sector-led growth.


Mastering the Risky Business of Public-Private Partnerships in Infrastructure

Mastering the Risky Business of Public-Private Partnerships in Infrastructure
Author: Manal Fouad
Publisher: International Monetary Fund
Total Pages: 61
Release: 2021-05-10
Genre: Business & Economics
ISBN: 1513576569

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Investment in infrastructure can be a driving force of the economic recovery in the aftermath of the COVID-19 pandemic in the context of shrinking fiscal space. Public-private partnerships (PPP) bring a promise of efficiency when carefully designed and managed, to avoid creating unnecessary fiscal risks. But fiscal illusions prevent an understanding the sources of fiscal risks, which arise in all infrastructure projects, and that in PPPs present specific characteristics that need to be addressed. PPP contracts are also affected by implicit fiscal risks when they are poorly designed, particularly when a government signs a PPP contract for a project with no financial sustainability. This paper reviews the advantages and inconveniences of PPPs, discusses the fiscal illusions affecting them, identifies a diversity of fiscal risks, and presents the essentials of PPP fiscal risk management.


Pakistan: Spending Needs for Reaching Sustainable Development Goals (SDGs)

Pakistan: Spending Needs for Reaching Sustainable Development Goals (SDGs)
Author: Fernanda Brollo
Publisher: International Monetary Fund
Total Pages: 21
Release: 2021-04-29
Genre: Business & Economics
ISBN: 1513582399

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This paper assesses the additional spending required to make substantial progress towards achieving the SDGs in Pakistan. We focus on critical areas of human (education and health) and physical (electricity, roads, and water and sanitation) capital. For each sector, we document the progress to date, assess where Pakistan stands relative to its peers, highlight key challenges, and estimate the additional spending required to make substantial progress. The estimates for the additional spending are derived using the IMF SDG costing methodology. We find that to achieve the SDGs in these sectors would require additional annual spending of about 16 percent of GDP in 2030 from the public and private sectors combined.


Benin

Benin
Author: International Monetary Fund. Fiscal Affairs Dept.
Publisher: International Monetary Fund
Total Pages: 70
Release: 2020-01-27
Genre: Business & Economics
ISBN: 1513528092

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The Public Investment Management Assessment (PIMA) of Benin has brought to light an institutional framework of high quality but ineffective implementation. In accordance with the PIMA methodology applied in several countries, the mission focused on assessing the institutional strengths for each institution in the analytical framework, as well as its effective implementation. The authorities in 2016 adopted an ambitious investment plan, the government action program (PAG), which is designed to stimulate Benin's economic and social development. Investments in flagship sectors have been identified as means to support this development; the PAG provides recourse primarily to new financing mechanisms, such as public-private partnerships, to ensure the realization of these investments. In connection with the implementation of the PAG, the financial incidences of selected projects should be fully accounted for and reflected in the budget documentation to ensure their sustainability. Enhanced coordination of planning and budget exercises would encourage a better consideration of recurrent expenditure.