DYNAMIC PANEL DATA ANALYSIS OF THE IMPACT OF PUBLIC SECTOR INVESTMENT ON PRIVATE SECTOR INVESTMENT GROWTH IN SUB-SAHARAN AFRICA
| dc.contributor.author | BOIKANYO, PHEMELO | |
| dc.date.accessioned | 2021-05-14T15:14:44Z | |
| dc.date.available | 2021-05-14T15:14:44Z | |
| dc.date.issued | 2018-11-12 | |
| dc.description.abstract | The present sought to analyze the impact of public sector investment on private sector investment in Sub-Saharan Africa. The study utilized panel data from 2005-2015 across forty-five SubSaharan African economies. To estimate the results, the study employed the Two-Step System GMM model as developed by (Arelano & Bover, 1995). In the presence of endogeneity, GMM is one of the robust estimation techniques that produces unbiased, efficient, and consistent estimators. For the validity of the instruments and presence of second-order serial correlation, the study used the Difference-in-Hansen and the Arrellano-Bond specification tests, respectively. The results from the study reflect that public sector investment negatively and significantly impacts private sector investment in Sub-Saharan Africa. Therefore, public sector investment crowds-out private sector investment. To account for the heterogeneous nature of countries in the region, the study conducted a sub-sample analysis by dividing the sample into low-income countries and lowerincome and upper-middle income economies. Results from the sub-sample analysis showed that public sector investment bore no significant effect on private sector investment in low-income countries sample. As regards lower-income and upper-middle income economies, public sector investment crowds-out private sector investment. To minimize the crowding-out effects of public sector investment on private sector investment, the study recommends four policy interventions: proliferation and mobilization of domestic resources; inclusive models of public sector investment; strengthening of public sector financial managements systems, and regional integration of public infrastructure development. | en_US |
| dc.identifier.uri | https://publication.aercafricalibrary.org/handle/123456789/1988 | |
| dc.publisher | University Of Bostwana | en_US |
| dc.subject | Investment, | en_US |
| dc.subject | GMM, | en_US |
| dc.subject | Difference-in-Hansen, | en_US |
| dc.subject | Public Sector, | en_US |
| dc.subject | Private Sector, | en_US |
| dc.subject | Arrellano Bond, | en_US |
| dc.title | DYNAMIC PANEL DATA ANALYSIS OF THE IMPACT OF PUBLIC SECTOR INVESTMENT ON PRIVATE SECTOR INVESTMENT GROWTH IN SUB-SAHARAN AFRICA | en_US |