PUBLIC AND PRIVATE INVESTMENT AND ECONOMIC GROWTH IN MEXICO

This paper analyzes the impact on economic growth of public and private investment spending in Mexico. Public investment expenditures had a positive and significant effect on output growth. Public investment's impact on economic growth was statistically identical to the impact of private capital spending. The contribution of public investment to output expansion came at the expense of private investment as indicating a significant crowding out effect. Copyright 1997 Western Economic Association International.