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Volume :22 Issue : 86 1997      Add To Cart                                                                    Download

THE ROLE OF INVESTMENT COMPONENTS IN KUWAIT’S ECONOMIC GROWTH

Auther : By: Naief Al-Mutairi

 
An increase in investment, with other things remaining constant , has unambiguous positive effects on the rate of economic growth, particularly its private component which was found, in many previous studies, to have greater effects on economic growth than public investment.  This paper examines the extent to which this hypotheses holds true for an oil-exporting country such as Kuwait.  Towards this end, the paper used annual data from Kuwait for the period 1972–1994 and employed a simple growth model that separates the effects of public and private sectors investments.  Contrary to previous findings, public investment was observed to exert a positive and a greater impact on economic growth than does private investment.

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