Government investment in manufacturing, Stimulus or hindrance to Pakistan's private sector?
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Authors
Looney, Robert E.
Subjects
Deregulation
Development plans
Government infrastructure
Investment
Pakistan
Development plans
Government infrastructure
Investment
Pakistan
Advisors
Date of Issue
1999
Date
1999
Publisher
Monterey, California: Naval Postgraduate School.
Language
Abstract
The cornerstone of the government’s adjustment program is to increase the efficiency
of private investment and activity by deregulating the economy and promoting competition. The
counterpart of this fundamental strategy is the need to increase the effectiveness of the public
sector which in Pakistan had become overextended. To this end, public sector resources and
management capacity are being redirected and concentrated in those areas in which public sector
intervention is required because of market failures or social objectives. The results obtained
strongly suggest that the government’s program is supported by strong empirical evidence. There
is no question that private investment has been discouraged by the public capital formation in
manufacturing. Not only has government investment in this area stifled the private sector, but also
it has diverted funds away from productive activities that would most likely have encouraged a
follow-on expansion in private investment.
Type
Description
International Journal of Social
Economics, Vol. 26 No. 4, 1999,
pp. 521-536, © MCB University
Press, 0306-8293
Series/Report No
Department
National Security Affairs