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Article
Publication date: 1 February 1997

Mohammad Zebib and Michael Muoghalu

This paper suggests that private investment expenditure is determined by the changes in domestic credit and net capital inflow to the private sector. Any increase in government…

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Abstract

This paper suggests that private investment expenditure is determined by the changes in domestic credit and net capital inflow to the private sector. Any increase in government investment increases private investment through the increase in the changes in private output (contributory effect) and decreases private investment through the decrease in the availability of the banking system's domestic credit and net inflow of capital to the private sector.

Details

Studies in Economics and Finance, vol. 18 no. 1
Type: Research Article
ISSN: 1086-7376

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