1,330
Views
1
CrossRef citations to date
0
Altmetric
GENERAL & APPLIED ECONOMICS

Symmetric and asymmetric impact of public investment on private investment in South Africa: Evidence from the ARDL and non-linear ARDL approaches

ORCID Icon, &
Article: 2189560 | Received 03 Aug 2022, Accepted 07 Mar 2023, Published online: 16 Apr 2023
 

Abstract

This study examines the impact of public investment on private investment in South Africa using the autoregressive distributed-lag (ARDL) and nonlinear ARDL bounds testing approach for the period from 1980 to 2018. The ARDL results show that public investment crowds in private investment in the long and short run. The NARDL results indicate that the negative shock in public investment leads to a decrease in private investment in the long and short run. The results show that public investment has an asymmetric impact on private investment in South Africa. The study recommends that government increase investment in infrastructure such as energy, roads and railways, among others, in order to promote private investment.

JEL classification:

Disclosure statement

No potential conflict of interest was reported by the authors.

Data availability statement

The data that support the findings of this study are available upon reasonable request.

Notes

1. see also Muthu (2017), Muyambiri and Odhiambo (2018).