Institutions and public investment: an empirical analysis |
| |
Authors: | Francesco Grigoli Zachary Mills |
| |
Institution: | 1. Expenditure Policy Division, Fiscal Affairs Department, International Monetary Fund, 1900 Pennsylvania Ave NW, Washington, DC?, 20431, USA 2. Public Sector Group, Poverty Reduction and Economic Management, World Bank, 1818 H St NW, Washington, DC?, 20433, USA
|
| |
Abstract: | This paper investigates the effect of institutional quality on the levels, volatility and quality of public investment. Our findings suggest an inverse relationship between public investment levels and institutional quality, supporting the idea that governments use public investment as a vehicle for rent seeking. We also find that lower quality of governance increases the volatility of public investment. Finally, we provide some tentative evidence of a positive relationship between institutional quality and the quality of infrastructure. Policymakers who aim to reduce infrastructure needs through capital spending should take measures to strengthen institutional capacity to manage public investments. |
| |
Keywords: | |
本文献已被 SpringerLink 等数据库收录! |
|