The Great Rebalancing Act: Can Investment Be a Lever in Asia?

Author/Editor:

Malhar S Nabar ; Murtaza H Syed

Publication Date:

February 1, 2011

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Ensuring stable growth in the postcrisis world economy will require a rebalancing of economic activity in several countries. In Asia’s export-dependent economies, this entails relying more on private domestic demand as a driver of growth. While some countries need to raise consumption, several need to raise investment or reorient it from tradable to nontradable sectors. These changes in investment could be facilitated by financial reforms that enhance domestically oriented firms’ access to credit, stronger incentives for corporate restructuring, policies to bolster the business climate and reduce uncertainty, and by improvements in infrastructure that raise the returns to private investment.

Series:

Working Paper No. 2011/035

Subject:

Gross fixed investment Infrastructure Private investment Return on investment Services sector

English

Publication Date:

February 1, 2011

ISBN/ISSN:

9781455217915/1018-5941

Stock No:

WPIEA2011035

Pages:

28

Please address any questions about this title to publications@imf.org