The Impact of Public Investment on Economic Growth in Republic of Macedonia
The Impact of Public Investment on Economic Growth in Republic of Macedonia

Summary/Abstract: The main purpose of this paper is to estimate the impact of public investment on economic growth in Macedonia during the 2003-2014 period. Using the method of simple linear regression and ordinary least squares method (OLS) we will make assessment of the impact of public investment on economic growth in the Republic of Macedonia. According to the results of empirical research we proposed that public investments have a high impact on average real growth of the economy of the Republic of Macedonia. As we have found the majority of authors in their studies that public investments have a significant effect on the economic development of a country, and our results are of the same evaluation. Where possible we concluded that increasing public investment to 1%, would affect GDP growth for 0:35%. Since t-test shows that t = 1.26, is greater than 0.05 we may conclude that this ratio has significance.

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