Reinhart, Carmen and Khan, Mohsin (1989): Private investment and economic growth in developing countries. Published in: World Development , Vol. 18, No. 1 (January 1990): pp. 243-258.
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Despite the growing support for market-oriented strategies, and for a greater role of private investment, empirical growth models for developing countries typically make no distinction between the private and public components af investment. This paper sheds some light on this important issue by formulating a simple growth model that separates the effects of public sector and private sector investment. This model is estimated for a cross-section sample of 24 developing countries, and the results support the notion that private investment has a larger direct effect on growth than does public investment.
|Item Type:||MPRA Paper|
|Original Title:||Private investment and economic growth in developing countries|
|Keywords:||growth investment public private productivity|
|Subjects:||E - Macroeconomics and Monetary Economics > E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment
E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models
|Depositing User:||Carmen Reinhart|
|Date Deposited:||27. Feb 2009 19:05|
|Last Modified:||11. Feb 2013 18:48|
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