Impact of public investment on the economic growth of the regions of Peru, period 2001 - 2013

Abstract

The main objective of this research was to analyze the impact of public investment on the economic growth of the regions of Peru, during the period 2001-2013. Public investment is approached through the execution of public expenditure on Public Investment Projects, which were disaggregated into four sectors: social, productive, infrastructure and others. As a source of information, the database of the National Institute of Statistics and Information and the Portal of Economic Transparency of the Ministry of Economy and Finance were used. For data analysis, an econometric methodological dynamic panel data approach proposed by Arellano and Bond (1991) was used. The results achieved suggest that public investment social has a positive and statistically significant impact on economic growth; In addition, the evidence indicates the sectors infrastructure and productive have generated a positive impact on growth, but were not statistically significant at a level of significance of 5%; investment in other sectors presented a negative impact on economic growth because it is statistically significant. The conclusions point to demonstrate that good programming and execution of spending on Public Investment Projects can help increase economic growth.