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A collaboration between public and private investment is always looked forward for efficient services to the country's citizens, especially in the health sector. If the public sector is reluctant to address investment needs, the private sector can replace it for good. However, government effectiveness and taxes on producers can sway away the motivation of the private sector towards fruitful investment. This study was initiated in Pakistan to address these concerns based upon empirical analyses ranging from 1980 to 2023 through the methodology of Autoregressive Distributed Lag (ARDL). Findings confirm public investment and taxes on producers to reduce private sector investment in both time horizons. On the contrary, government effectiveness is found to encourage private sector investment in both time horizons. Therefore, it is suggested the concerned authorities be careful in initiating public sector investment as it is a substitute for private investment. Moreover, taxes must be progressive in nature so that private investment is not discouraged. Finally, the government's effectiveness is suggested to be strengthened for better standing of private investment.
Khawaja Asif Mehmood, Sidra Ilyas, Fareeha Riaz, Farzana Munir, Muhammad Aurmaghan. (2024) PUBLIC-PRIVATE SECTOR INVESTMENT COLLABORATION IN HEALTH SECTOR OF PAKISTAN: DO TAXES ON PRODUCER AND GOVERNMENT EFFECTIVENESS MATTER?, PAKISTAN ISLAMICUS (An International Journal of Islamic & Social Sciences), PAKISTAN ISLAMICUS: January - March: 2024; Vol-04 Issue- 01, Issue 01.
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