Subnational Public Investment by Levels of Government and Employment in Peru: 2012 – 2022
DOI:
https://doi.org/10.51325/ejbti.v2i3.168Keywords:
National Investment, Regional Investment, Local Investment, Total Employment, Male Employment, Female Employment.Abstract
The objective of this research is to determine the impact of total investment in the economy, disaggregated by levels of government—national, regional, and local—on employment generation, differentiated by gender. The sample comprises all departments within the national territory, and the study spans the period from 2012 to 2022. To estimate the parameters, the POOL panel method was employed. The fixed effects and random effects models yielded inconsistent and non-significant results, leading to the adoption of the POOL panel approach. The results indicate that, at the aggregate employment level, a unit increase in local government investment generates a 0.44% increase in total employment, followed by national government investment, which contributes a 0.36% increase. When disaggregated by gender, a unit increase in local government investment results in a 0.39% increase in male employment, again followed by national government investment with a 0.36% increase. For female employment, a unit increase in local government investment leads to a 0.51% increase, with national government investment contributing 0.36%.
References
Abbasov, J. (2023). A new simple test to evaluate the efficiency of government spending. Economics and Sociology, 16(3), 97–124. https://www.ceeol.com/search/article-detail?id=1193256
Arrow, K. J., & Kurz, M. (1970). Optimal growth with irreversible investment in a Ramsey model. Econometrica: Journal of the Econometric Society, 331–344. https://doi.org/10.2307/1913014
Bago, J. L., & Dessy, S. E. (2023). Motherhood and women’s self-employment: Theory and evidence from Nigeria. Economic Development and Cultural Change, 71(3), 1003–1055. https://doi.org/10.1086/716322
Bai, J., Fairhurst, D., & Serfling, M. (2020). Employment protection, investment, and firm growth. The Review of Financial Studies, 33(2), 644–688. https://doi.org/10.1093/rfs/hhz066
Blanchard, O., & Perotti, R. (2002). An Empirical Characterization of the Dynamic Effects of Changes in Government Spending and Taxes on Output. The Quarterly Journal of Economics, 117(4), 1329–1368. http://www.jstor.org/stable/4132480
Busemeyer, M. R., De la Porte, C., Garritzmann, J. L., & Pavolini, E. (2020). The future of the social investment state: Politics, policies, and outcomes. In The future of the social investment state (pp. 1–9). Routledge.
Carriel, O. (2016). Public investment and its impact on job generation: 2007–2015 period (Master’s thesis). Universidad de Guayaquil, Faculty of Economic Sciences, Guayaquil, Ecuador.
Chancusig, G. (2022). Effects of public investment on the economic growth of Ecuador. Cuestiones Económicas, 32(1), 3–3. https://doi.org/10.47550/RCE/32.1.2
Del Pozo, D., & Fernández-Sastre, J. (2021). Employment and investment in innovation activities without introducing new technologies: A study on Ecuador. Estudios de Economía, 48(2), 219–248. http://dx.doi.org/10.4067/S0718-52862021000200219
Duarte-Sánchez, D. D., Ruíz-Díaz, M., & Kwan-Chung, C. K. (2023). Impact of export maquiladora companies on economic growth and job creation in Paraguay, 2020. Revista de Análisis y Difusión de Perspectivas Educativas y Empresariales, 3(5), 8–16. https://doi.org/10.56216/radee012023jun.a01
Enrique, M., & Mejía, J. (2018). Public investment in the transportation, agricultural, and energy sectors and its impact on job creation in the departments of Peru; 2007–2016 (Master’s thesis). Universidad Nacional Santiago Antúnez de Mayolo, Faculty of Economics and Accounting, Ancash, Peru.
Gujarati, D., & Porter, D. (2010). Econometrics. McGraw-Hill/Interamericana Editores, Mexico.
Gutiérrez-Cruz, F. S., Moreno-Brid, J. C., & Sánchez-Gómez, J. (2021). Public and private investment in Mexico: Complementary engines of economic growth? El Trimestre Económico, 88(352), 1043–1071. https://doi.org/10.20430/ete.v88i352.1357
Hernández, J. (2010). Public investment and economic growth: Toward a new perspective on the role of government. Economía: Teoría y Práctica, (33), 33–54.
Hernández-Sampieri, R., & Mendoza, C. (2018). Research methodology: Quantitative, qualitative, and mixed methods. McGraw Hill Education. ISBN: 978-1-4562-6096-5.
Jeffers, J. S. (2024). The impact of restricting labor mobility on corporate investment and entrepreneurship. The Review of Financial Studies, 37(1), 1–44. https://doi.org/10.1093/rfs/hhad054
Kumar, J. C. R., & Majid, M. A. (2020). Renewable energy for sustainable development in India: Current status, future prospects, challenges, employment, and investment opportunities. Energy Sustainability and Society, 10(1), 1–36. https://doi.org/10.1186/s13705-019-0232-1
Meza-Carvajalino, C. A. (2022). Econometrics. Ediciones Unisalle. https://doi.org/10.19052/9786287510265
Potes, M. (2022). Analysis of private investment in Ecuador and its effects on full employment, underemployment, and unemployment: 2015–2020 (Master’s thesis). Universidad de Guayaquil, Faculty of Economic Sciences, Guayaquil, Ecuador.
Prada-Trigo, J., Aravena, N., & Barra Vieira, P. (2021). Real estate investment from northern mining in Greater Concepción and its effects on urban growth. Revista de Geografía Norte Grande, (78), 115–138. http://dx.doi.org/10.4067/S0718-34022021000100115
Quintero, M. (2021). Public investment and its role in productivity and economic growth: Its importance during the COVID-19 pandemic (Master’s thesis). Universidad de La Laguna, Faculty of Economics, Business, and Tourism, Spain.
Ram, M., Aghahosseini, A., & Breyer, C. (2020). Job creation during the global energy transition towards 100% renewable power systems by 2050. Technological Forecasting and Social Change, 151, 119682. https://doi.org/10.1016/j.techfore.2019.06.008
Ramírez-Cedillo, E., & López-Herrera, F. (2021). Public spending and growth in Latin America: Wagner’s Law and Keynes’ Hypothesis. Investigación Económica, 80(316), 109–132. https://doi.org/10.22201/fe.01851667p.2021.316.76314
Rodas, A. (2021). Fiscal policy and employment in Peru (Master’s thesis). Pontificia Universidad Católica del Perú, Graduate School, Lima, Peru
Salazar, C. A. (2020). Public spending and economic growth: Theoretical controversies and evidence for Mexico. Economía UNAM, 17(50), 53–71. https://doi.org/10.22201/fe.24488143e.2020.50.519
Shabbir, M. S., Bashir, M., Abbasi, H. M., Yahya, G., & Abbasi, B. A. (2021). Effect of domestic and foreign private investment on economic growth in Pakistan. Transnational Corporations Review, 13(4), 437–449. https://doi.org/10.1080/19186444.2020.1858676
Tilahun, S. (2021). The determinants of public investment in Ethiopia: An ARDL approach. Cogent Economics & Finance, 9(1), 1929680. https://doi.org/10.1080/23322039.2021.1929680
Zavala-Álvarez, J., Sosa-Gordillo, J. F., Sánchez-López, E., Barreras-Serrano, A., & Nemesio-Laguna, E. R. (2020). Estimation of the regional economic impact of a technological pig farm using an input-output matrix. Nova Scientia, 12(24), 1–26. https://doi.org/10.21640/ns.v12i24.2317
Downloads
Published
Issue
Section
License
Copyright (c) 2023 EuroMid Journal of Business and Tech-Innovation (EJBTI)
This work is licensed under a Creative Commons Attribution 4.0 International License.
