A comparison of public and private investment growth performance of economic sectors: A Case Study of Iran

This study aims to compare the efficiency of public and private investment in terms of effect on growth performance of sectors viz. agriculture, mine and industry and service sector using neoclassical growth model and pooled data technique. The applied index representing efficiency in public and private sectors is the marginal productivity of capital investment. The findings of this study indicate that public investment has had a positive effect on the growth of service sector while private investment has had positive impact on growth of both industry and service sectors. At the same time marginal productivity of investment in private sector tends to be higher than that of public sector. On this ground, one could justify the undergoing program of privatization of state owned enterprises.