Working Paper
Road construction machinery at work in Kazakhstan.

"Crowding In" and the Returns to Government Investment in Low-Income Countries

This paper estimates the effect of government investment on private investment in a sample of 39 low-income countries. The analysis finds that an extra dollar of government investment raises private investment by roughly two dollars and output by 1.5 dollars.


Carlos Felipe Jaramillo

World Bank Vice President for Latin America and the Caribbean

A student in Hanoi does research at the Vietnam Development Information Center in Hanoi, Vietnam

Research Program on Economic Growth

Understanding growth is crucial to understanding the relative merits of government interventions in international trade, financial markets, health and education, public infrastructure, and governance. Ongoing research seeks to achieve a deeper understanding of the mechanisms that translate policy actions and reforms into growth.