Impact of Public Infrastructure Investment on Private Infrastructure Investment


  • Faisal Nadeem Shah Departemnt of Economics, University of Sargodha, Pakistan
  • Zainab Fatima Department of Economics ,National University of Modern Languages islamabad, Pakistan
  • Bilal Bashir Department of Economics, Govt. Graduate College of Commerce, Sargodha, Pakistan



Private Infrastructure Investment, Government Infrastructure Investment, Crowding Out, ARDL Bound Test


The aim of this paper is to find the relationship among government and private capital formation in Pakistan during the period 1981 to 2018. This study employs Auto Regressive Distributive Lag (ARDL) bound test. The results show that government infrastructure investment negatively effects on private infrastructure capital formation in long run and short run, indicating that government infrastructure investment crowds out private infrastructure investment. In determining the role of the government in investment and liberalization policies, the results of this paper have important policy implications.


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How to Cite

Shah, F. N. ., Fatima, Z. ., & Bashir, B. . (2021). Impact of Public Infrastructure Investment on Private Infrastructure Investment. Review of Economics and Development Studies, 7(3), 407-416.