The impact of public investment on private investment in Mexico, 1980-2007


  • Felipe de Jesús Fonseca Hernández Universidad de Guadalajara



public investment, private investment, crowding in effect, crowding out effect


Even though there is a growing consensus in the existing literature on the positive effect that public investment generates for economic growth, its impact on private investment is by no means a settled issue. This study seeks to determine empirically the relation between these two variables for the Mexican economy during the 1980-2007 period. The results of dynamic estimations yield a partial crowding out of public investment in the short run, while, in the long run, it exerts a weak and marginal complementarity effect on private investment.


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How to Cite

Fonseca Hernández, F. de J. (2009). The impact of public investment on private investment in Mexico, 1980-2007. Estudios Económicos De El Colegio De México, 24(2), 187–224.

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