The estimation of the public investment multiplier in Romania

This study has been included in the larger theme referring to effectiveness of the fiscal policy tools for stimulating an economy which is affected by the economic crisis. The objective has been to settle the importance degree of the state's capital spending in stimulating the Romanian economic activity, under the terms in which the exit from recession is hardly anticipated for the end of 2011. The results obtained within an OLS regression are in compliance with those which have been calculated by OECD for the emerging countries from the Eastern and Central Europe. The multiplier of the public investments estimated for the period 2000:12010:1 has been 0.7, so that under the terms of increasing the state's capital spending by 1 Euro, the GDP has only increased by 0.7 Euro.