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

Bárbara Soriano, Alberto Garrido

Abstract

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.

Keywords

Agricultural exports, development, panel data, public-private investment in infrastructure.

Subject classification

C33, F21,O11, Q17.

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