Public Investments, Private Investments, and Structural Transformation

In low-income economies, fostering the development of the private sector is essential for reducing poverty. However, these economies often exhibit a scarcity of private enterprises and limited entrepreneurial activities. Despite the critical importance of private sector growth, there is limited understanding of effective measures to stimulate it. This dissertation investigates two potential catalysts for private sector growth and structural transformation: 1) public investments in infrastructure, specifically roads and electricity, and 2) private investments from external regions. In Chapter 1, using unique firm-level data, I explore the complementary effects of public investments in roads and electricity on firm creation, shedding light on how infrastructure investments can stimulate entrepreneurial activities. Chapter 2 develops a regional trade model and draws on evidence from China and India to analyze the impact of road improvements on business activities. The findings underscore the crucial role of labor mobility from the agricultural sector to the non-agricultural sector in shaping structural transformation. Lastly, Chapter 3 investigates the impact of private investments from foreign regions on local entrepreneurial activities, providing insights into how external investments can influence local business dynamics. By analyzing these measures, this dissertation contributes to our understanding of the mechanisms through which public and private investments can foster private sector growth and drive structural transformation in low-income economies.在低收入经济体中，扶持私营部门发展是减贫的关键举措。然而此类经济体普遍存在私营企业稀缺、创业活动受限的问题。尽管私营部门增长意义重大，但当前对有效刺激其发展的举措仍缺乏足够认知。本论文聚焦两类可推动私营部门增长与结构转型的潜在驱动因素：其一为基础设施领域的公共投资（具体涵盖道路与电力设施），其二为外部区域的私人投资。第1章依托独特的企业层面数据（firm-level data），探究道路与电力公共投资对企业创立的协同效应，阐明基础设施投资如何激活创业活动。第2章构建区域贸易模型，并结合中国与印度的实证证据，分析道路设施升级对商业活动的影响。研究结果凸显了劳动力从农业部门向非农业部门流动对结构转型的关键作用。最后，第3章探究外部区域私人投资对本地创业活动的影响，揭示外部投资如何影响本地商业动态。通过对上述两类举措的分析，本论文深化了对公共与私人投资如何推动低收入经济体私营部门增长、驱动结构转型的内在机制的认知。