ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Did Public Investment Crowd Out Private Investment in India?

The maximum entropy bootstrap method is applied to overcome the econometric constraints of using a short time series after the publication of a new macroeconomic series in India. A short time series (quarterly data) of stationary and non-stationary variables between 2011 and 2016 is used to confirm the positive role of public infrastructure investment. The significant result has policy implications in terms of the current debate, whether public investment “crowds in” rather than “crowds out” private corporate investment in India.
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