The role of private sector in development: The relation between public-private investment in infrastructure and agricultural exports in developing countries | Zendy

Bárbara Soriano | Zendy; Alberto Garrido | Zendy

Open Access

The role of private sector in development: The relation between public-private investment in infrastructure and agricultural exports in developing countries

Author(s) -

Bárbara Soriano,

Alberto Garrido

Publication year - 2015

Publication title -

economía agraria y recursos naturales

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.304

H-Index - 9

eISSN - 2174-7350

pISSN - 1578-0732

DOI - 10.7201/earn.2015.02.05

Subject(s) - developing country , investment (military) , private sector , business , agriculture , foreign direct investment , panel data , public sector , developed country , economic growth , economics , economic policy , international economics , economy , macroeconomics , political science , population , demography , sociology , politics , law , econometrics , ecology , biology

Increasing foreign private investment in developing countries explains why the Public-Private Investment (PPI) is becoming a key tool to reach the development goal. This article analyzes the relation between PPI in infrastructure and agricultural exports in developing countries. We use the panel data approach (52 countries and 17 years). Results show that PPI in infrastructure has a positive impact on agricultural exports of developing countries. The impact is greater in developing countries with higher income rates. This suggests that the lower income countries require the intervention of public sector without which private investment cannot help to economic development.

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