Published Paper Details:

The objective of this study is to investigate whether the connection between individual investments and public investment is nonlinear and what nature it takes. Policymakers and economists are interested in this relationship as it directly influences economic growth, productivity, and welfare. We shall look at numerous empirical investigations, theoretical models, and economist analyses done to perform this review. in economies and settings that are both developed and emerging. We will track how shifts in public investment--infrastructure, spending, government-funded initiatives, etc.--affect the actions of private investors. According to several studies, public and private investment dynamics are nonlinear. For instance, by lowering company expenses, boosting confidence, and enhancing infrastructure, a rise in public expenditure can encourage private investment. Nevertheless, increases in public investment may have the unintended consequence of decreased returns or even crowding out, in which case private investments are driven out by rising interest rates or declining market confidence. Further studies emphasize how institutional elements, the formulation of policies, and the state of the economy influence the character of public and private investments.