Private Investment And Economic Growth In Developing Countries

Download or read book Private Investment and Economic Growth in Developing Countries written by International Monetary Fund and published by International Monetary Fund. This book was released on 1989-07-26 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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 of 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.