The way in which local public administration (LPA) drives innovation, develops sustainable infrastructure, and supports inclusive industrialization, shapes public perceptions of development and institutional legitimacy. This study analyzes how public investment, trust in municipal organizations,...

This technical assistance assessed Uzbekistan’s public investment management practices and their climate sensitivity using the Public Investment Management Assessment (PIMA) with the Climate Module (C-PIMA). The assessment found that Uzbekistan has made important progress in strengthening...

Aside from horizontal structural reforms, raising public investment should be a key pillar of Indonesia’s pursuit of its Vision 2045. However, this must be complemented by policies aimed at enhancing the efficiency of public investment, thereby maximizing its impact. Mobilizing additional...

An IMF team found that, compared to the 2017 PIMA results, Burkina Faso has made progress in improving its public investment management system, but this is still insufficient to strengthen PIM efficiency. The assessment conducted during this mission shows an encouraging improvement in PIM...

This note examines whether public infrastructure investment crowds in private investment in the Western Balkans and how this relationship compares with the EU. Using Eurostat data for 2000-2024 and a sector-level analysis, it finds that higher public infrastructure investment is generally...

The Scottish Budget and Spending Review published on 13 January set detailed spending plans for 2026-27, alongside higher-level plans for the following two years for day-to-day (resource) spending and the following three years for investment (capital) spending. Understandably, the Scottish...

This paper investigates how external shocks propagate through fiscal transmission mechanisms in a commodity-dependent economy within a dynamic macroeconomic framework. The study contributes to the literature on macroeconomic fluctuations by examining the interaction between external revenue...

Using high-frequency data, the paper analyzes the link between public infrastructure investment and private corporate investment in India for the decade ending 2023-24. We adopt the ARDL model to investigate the existence of cointegration and find strong evidence of the crowding-in of private...

After each economic crisis, such as the recent COVID-19 pandemic, governments have used public investment as a crucial tool to help economies recover quickly. However, a significant concern is how to structure such investments to meet the intended objectives while avoiding risks during...

This article assesses the potential effects of the macroeconomic rates of return of private and public investment on wage share for 16 OECD countries from 1980 to 2022. Using the macroeconomic rates of return of investments and the wage share at factor cost and at market price, it was possible...

Nepal experienced its worst unrest in decades on September 8 and 9, 2025. A social media ban triggered protest against corruption, and this was followed by widespread unrest causing significant human and economic losses. The damage to public and private infrastructure is still being assessed. On...

This paper estimates growth-maximizing levels of public capital and investment across countries using a structural framework that accounts for three critical features: public investment efficiency, human capital levels, and congestion effects. A harmonized panel data set covering 166 countries...

Public investment can support geoeconomic policy goals by strengthening economic resilience through the creation of public assets and by fostering domestic sources of economic growth. This paper presents new evidence on how public investment affects output, unemployment, private investment and...

In the 2010s, Peru experienced an increase in public educational investment, a substantial improvement in public school learning outcomes, and an erosion in the private sector learning premium. We use longitudinal, geo-coded register data on primary schools and pupils in urban areas to study how...

This article aims to investigate whether the effect of public investment on private investment differs in regimes of relatively high and low-income inequality in Brazil from 1996 to 2022.The linear vector autoregressive (VAR) model was applied to estimate the effect of public investment on...

This policy brief presents simulation results regarding the macroeconomic effects of a green EU public investment fund using the macroeconometric simulation model NiGEM. After briefly outlining the investment needs in the EU, we first present results using the standard version of NiGEM. We then...

We employ a novel regional dataset on European private investment and business R&D spanning the years 2000 to 2021, along with comprehensive historical data on European Union Structural and Investment (ESI) funds, to estimate whether ESI funds have crowding-in or crowding-out effects on private...

Public investment has played, and will continue to play, a crucial role in Viet Nam's economic and social development. The Government of Vietnam has made major progress in the past decades in improving the country's infrastructure. Recognition of past successes should not, however, prevent us...

This research examines the spatial spillovers of public capital on gross value added across 216 cantons in continental Ecuador. The investigation is conducted within the framework of Spatial Econometrics, utilizing various model specifications and spatial weight matrices, complemented by a Cobb...

Das Sondervermögen Infrastruktur und Klimaneutralität (SVIK) soll den staatlichen Investitionsrückstand in Deutschland auflösen. Damit dieses Mammutprojekt gelingen kann, zeigt diese Studie wesentliche Stolpersteine auf und gibt konkrete Handlungsempfehlungen. Der Bund hat seine...

The trade-off between consistent (rule-based) and optimal fiscal policy became evident in the zero lower bound era. With such low interest rates, the argument goes, optimal fiscal policy required extending debt financed public investment spending. But while fiscal rules ensured consistency, they...

Against a backdrop of constrained fiscal space, Belgium faces considerable investment needs. Improving infrastructure governance processes can enhance investment efficiency, achieving more "bang" for each investment "buck". This paper analyzes public investment management practices in Belgium,...

Public investment in Belgium has been low historically. Against severe budgetary constraints and fiscal consolidation requirements, public investment should however be preserved or, ideally, increased to mitigate the demand impact of consolidation and enhance productive capacity to lift...

The assistance assessed The Gambia's public investment management practices and their climate sensitivity using the Public Investment Management Assessment (PIMA) with the Climate Module (C-PIMA). Findings reveal progress in strengthening the institutional design of public investment management...

This study estimates the impact of public debt on public investment in Central and Eastern European (CEE) economies. We implement Cross-sectionally Augmented Autoregressive Distributed Lag (CS-ARDL) model, which effectively handles cross-sectional dependence and slope heterogeneity, while...

Are European municipalities ready to lead the green and social infrastructure transition? The EIB Municipalities Survey 2024-2025 sheds light on this key question by analysing data from over 1,000 municipalities across the EU.

Viet Nam's long-term goal is to attain high-income status by 2045. Achieving a modern, industrialized and resilient economy with higher living standards will depend on well-designed government policy interventions, combined with well targeted, efficient and effective public expenditures. Among...

An IMF team found that the State of Odisha had an overall public investment management (PIM) system that compared well with other emerging market economies, reflecting in particular strong institutions at the execution stage, which have helped the State increase significantly its public...

This How to Note discusses how low-income developing countries (LIDCs) can strengthen the effectiveness and efficiency of their public investment. The note draws on Public Investment Management Assessments and focuses on eight institutions that are likely to be key reform priorities in many...