ABSTRACT

This paper emphasizes on the important role that public investment can play in coming years for realizing government policy goals of economic development (poverty reduction , climate change mitigation, as well as responding to forthcoming demographic trend) particularly in intensified urbanization. It also visualizes the empirical record whether big infrastructure and public capital drives have succeeded in accelerating economic development as big long-lasting drives in public capital spending, were arguably clear for making exogenous policy decisions. On average, the picture would indicate weak association between development and public investment in short run period impact but in long run, bond becomes stronger. It argues against the importance of long term productivity effects, as these are triggered by the completed investments (which take several years) and not by the mere spending on the investments

Keywords: Public Investment, Economic Development, Macroeconomic Effect, Economic Growth And Cost-Benefit Analysis