Abstract

Evaluation of public investment efficiency in macroeconomic terms has increased the attention of the researchers in recent years. In this paper we concentrating on the evaluation of public investment based on the impact they have on the economic indicators and specifically the growth of private investment. Public investment at national and local level have an important role in economic growth and particularly public infrastructure contributes in increasing private investment, in the developing economies. In this regard, in our paper we get in study investment in public infrastructure and their impact on the number of private businesses in the municipality of Saranda. In the first part of this paper is treated the theoretical aspect of public investment, identification of economic indicators and evaluation of public investment on the basis of these indicators. In the second part we have treated methodology for collecting and processing data. For the realization of our paper, we are based on a statistical study of secondary data and to process them is using linear regression model. Data analysis represents the third part of the study, namely the correlation analysis of independent variables and the construction and analysis of linear regression equation, which expresses the connection of independent variables with the dependent variable. The ratio of public investment in infrastructure to public investment total, represent independent variable with the more important that we have included in our study, interest rates and the index of economic freedom represents independent explanatory variables, while number of business entities represents the dependent variable.