Impact of Public Expenditure and Quality of Institutions on Private Investment in CEMAC’s Countries

Private investment as a vehicle for growth and employment has been a major concern in recent years. This article analyzes the impact of public spending and the quality of institutions on private investment in CEMAC. The results of an econometric analysis using a spatial Durbinmodel (SDM) with random effects show that public investment expenditure, consumption and the quality of institutions have a positive impact on private investment in CEMAC.These results have made it possible to reformulate the implications of economic policies that go in the direction of strengthening public expenditure and improving the quality of institutions.

Full Text: PDF     DOI: 10.15640/jeds.v8n3a3