Impact of Public Investment and Its Contribution

In Peru, the modernization of public management is fundamental to the country’s development. Despite economic growth and increased state revenues, the public sector faces challenges in terms of efficiency and citizen satisfaction, particularly in the province of San Roman. The research aims to analyze the influence of public investment and economic activities on the economic development of the province in the period from 2007 to 2021. The hypothesis is that both public investment and economic activities have a positive impact on the economic development of the province. It had been assumed that public investment would be the most influential factor in this process. The results of the regression analysis show a strong positive correlation between economic development, public investment and economic activities. However, public investment has a relatively minor influence (0.35%) compared to Trade (63.99%), Agriculture (28.82%) and Manufacturing (4.11%). This suggests that, in reality, Commerce is the most influential factor in the economic development of the province, in contrast to Trade, which is the most influential factor in the economic development of the province, in contrast to Trade, which is the most influential factor in the economic development of the province.