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Too much and too fast? Public investment scaling-up and absorptive capacity

Andrea Presbitero · 2016 · Journal of Development Economics

Summary. Rapid scaling-up of public investment in low-income countries reduces project success rates when absorptive capacity—skills, institutions, and management capability—is limited. Analysis of World Bank projects across 80 countries from 1970 to 2007 shows projects implemented during investment scaling periods perform worse, though the effect is modest, particularly in poor and capital-scarce nations.

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Presbitero, A.. (2016). Too much and too fast? Public investment scaling-up and absorptive capacity. Journal of Development Economics. https://doi.org/10.1016/j.jdeveco.2015.12.005

Details

DOI
10.1016/j.jdeveco.2015.12.005
Countries
Italy, United States
Regions
Europe, North America
Categories
policy, funding, general-innovation
Added
2026-04-28