Impact of Public and Private Investments on Economic Growth of Developing Countries

Abstract: This paper aims to study the impact of public and private investments on the economic growth of developing countries. The study uses the panel data of 39 developing countries covering the periods 1990-2019. The study was based on the neoclassical growth models or exogenous growth models state in which land, labor, capital accumulation, etc., and technology proved substantial for economic growth. The paper finds that public investment has a strong positive impact on economic growth than private investment. Gross capital formation, labor growth, and government final consumption expenditure were found significant in explaining the economic growth. Overall, both public and private investments are substantial for the economic growth and development of developing countries.