Home » Economy » Investment models » Various investment models » Private investment model
- When there exists certain shortfall of earnings in the public sector, Government invites private players to invest in some of its ventures
- The private investment can be domestic or foreign in nature
- A foreign direct investment (FDI) can improve the current infrastructure and generate employment in the process.
- This model is one of the most sought after when it comes to external investment
- Also, Private investment can generate more efficiency by creating more competition, realization of economies of scale and greater flexibility than is available to the public sector