Trade and Industry

The Role of Public Investment in Promoting Economic Growth: A case study of Mauritius

  • Year: 2009
  • Organisation: Services Sector Development Thematic Working Group; TIPS, BIDPA and UoM
  • Publication Author(s): Pooloo Zainah
  • Countries and Regions: Common Market for Eastern and Southern Africa (Comesa)

This paper employs a reduced form Solow Growth framework to investigate the role of public investment on infrastructure on economic performance for the case of Mauritius over the period 1970-2006. Given the non-stationary characteristics of the data, an error correction model is adopted. Public capital is shown to have significantly contributed to Mauritian economic performance. Moreover results suggest that there may be indirect effects via private capital accumulation and the openness channel as well.