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Title: Causality relationship between public investment and private investment : the case of Indonesia
Authors: Arini S, Prima Rosita
Siregar, Baldric
Keywords: Public investments -- Indonesia
Capital investments -- Indonesia
Human capital -- Indonesia
Least squares
Issue Date: 2016
Publisher: Governance Research and Development Centre, Croatia & University of Malta, Faculty of Economics, Management and Accountancy, Department of Insurance
Citation: Arini S, P. R., & Siregar, B. (2016). Causality relationship between public investment and private investment : the case of Indonesia. Journal of Corporate Governance, Insurance and Risk Management, 3(3), 105-125.
Abstract: Public investment in APBN annually budgeted as capital expenditure. However, public investment not only in the form of physical capital but also in the non-physical forms of human resources that can be looked at education expenditure and health expenditure that called as human capital. The purpose of this study is to provide empirical evidence about causality that occurred between public expenditure and private sector investment in Indonesia with 33 provinces over the study period 2010-2013. The statistical tool used in this study is the Three-stage Least Squares from EViews. Results of this study indicate that there are causal relationship between public investment in infrastructure and private investment and between public investment in infrastructure and public investment in human resources. However, no causal relationship occurs between the public investment in human resources and private investment. As a control variable, GDP has positive and significance effect on private investment.
ISSN: 2757-0983
Appears in Collections:JCGIRM, Volume 3, Issue 3, 2016

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