THE IMPACT OF PUBLIC AND PRIVATE INVESTMENT ON THE GROWTH OF SMALL AND MEDIUM-SIZED ENTERPRISES

Abstract

This study illustrates the impact of Public and Private Investment on small and medium-sized enterprises (SMEs) in Pakistan. The study observes the relationship of public and private investment on the growth of SMEs and it also investigates the association of Government expenditure with SMEs in the short run and long run respectively. For achieving the purpose of the study Auto Regressive Distributed Lag approach is employed. The results show that the impact of public and private investment on the growth of SMEs is significant and positive. Moreover, government expenditures also have a positive and significant contribution to the growth of SMEs. Investment and government expenditures are supposed to be the most important determinants in SME growth for Pakistan.