The Effect of Private and Public Investment on Economic Growth in Iran
Subject Areas : Applied Economics
غلامعلی حاجی
1
(مسئول مکاتبات)
مینا عسگری
2
(ندازد)
Keywords: Economic growth, Private investment, public investment, Iran,
Abstract :
In this study the effects of private and public investment on economic growth has been studied. For this purpose, a neo-classical production function is defined; total investment is separated into private and public; and the Ordinary Least Squares (OLS) method for estimating the growth model is used. The results of the model for the period of 1346-1386 show that the impact of private investment on economic growth is more significant than public investment. Our model suggests that the government should not invest in sectors that are competing with the private sector; instead they should focus in investing in infrastructure of the country.
