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.
Download (7MB) | Preview
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 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy
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|
Balaosa, Bela, "Exports and Economic Growth: Further Evidence," Journal & Dev~lovment Economics (June 19781, pp.181-89.
I Pt e tra (Balti,more Hd.: Johns Hopkins University Press), 1982.
Bardhan, Pranab, and Sydney Lewis, "Models of Growth with Imported Inputs," Economlca (November 19791, pp. 373.85.
Blejer, Mario I., and Hohsin S. Khan, "Government Policy and Private Investment in Developing Countrfes," IMF Staff Pa~ers (June 19841, pp. 379-403.
Chenesy, Hollis, and Alan M. Strout, "Foreign Assistance and Economic Development," besican Economic Review (September 1966), pp. 679-733.
Chenery, Hollis, Sherman Robinson, and Moshe Syrquin, Jndustrialization pnd Growth. A Comparative Study, (World Bank: Oxford University Press), 1986.
Corbo, Vittorio, Morris Goldstein, and Mohsin Khan, (eds.), Growth-00 e Proarams,Washin,gton D.C.: IMF and World Bank), 1987.
Edwards, Sebastian, "Stabilization, Macroeconomic Policy and Trade Liberalization," World Bank unpublished (May 1 9 8 8 ) .
Fischer, Stanley, "Economic Growth and Economic Policy," in V. Corbo, M. Goldstein, and M. Khan, (eds.), Growth-Oriented Adiustment B o ~ r a m s , (Washington D.C.: IMF and World Bank), 1987, pp. 151-78.
Fry, Maxwell J., "Saving, Investment, Growth and the Cost of Ffnanctal Repress f on, " World Develo~ment (April 1980) , pp . 31 7 - 27.
Giovannini, Alberto, "The Interest Elasticfty of Savings in Developing Countries: The Existing Evidence," World Development (July 19831, pp. 601-07.
Khan, Mohsin S . , Peter J . Hontiel, and Nadeem U1 Haque, "Adjustment w i t h Growth: Relating the Analytical Approaches of the IMF and the World Bank," Journal of Develo~rnent Economics (1989), forthcoming.
Krueger, Anne O . , Forelan Trade Regimes and Economic Develo~ment:Liberalization Attem~ts and Conseauences, (Cambridge MA: Bahlinger),1978.
Lal, Deepak, The Poverty of Devele~ment Economics, (London: Institute of Economic Affairs), 1983.
Lal, Deepak, and Sarath Rajapatirana, "Foreign Trade Regimes and Economic Growrh in Developing Countries," World Bank Research Observer (3uly 1987), pp. 189-217.
McKinnon, Ronald I., Fwney and Capital in Economic Development,(Washington D.C.: The Brookings Institution), 1973.
Otani, Ichiro, and Delano Villanueva, "Theoretical Aspects of Growth in Developing Ccruntrles: External Debt Dynamics and the Role of Human Capital," IMF Staff Pa~ers (19891, forthcoming.
- 1 "Determinants of Long-Term Growth Performance in Developing Countries," IMF Working Paper, WF/88/97 (November 1988).
Ram, Rati, "Exports and Economic Growth: Some Additional Evidence," Economic Development and Cultural Channe (January 19851, pp. 4 1 5 - 2 5 .
Robinson, Sherman, "Sources of Growth in Less Developed Countries: A Cross-Section Study," Ouarterlv Journal of EconomLcs (August 1971)+pp. 391-408.
Solow, Robert, "A Contribution to che Theory of Economic Growth," Quarterlv Journal of Economis (February 1956), pp. 65-94.
, "Technical Change and the Aggregate Production Function," Review of Economics and Statistics (August 1957), pp. 312-20.
Tyler, Wflliam G., "Growth and Export Expansion in Developing Countries: Some Empirical Evidence," Journal of Develo~ment Economics(March 19811, pp. 121-30.