Multi-Country Evidenceon the Effects of Macroeconomic, Financial and Trade Policieson Efficiency of Resource Utilization in the Developing Countries

July 1, 1992

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

This study examines the effects of selected policies on economic efficiency in 81 developing countries by pooling cross-country data over various subperiods between 1961-90. An incremental output-capital ratio is the measure of economic efficiency, while the policy variables include: export orientation, size of the public sector, directed credit program through development bank lendings, financial depth, inflation rate, real interest rate, and real exchange rate distortion. The export-orientation, financial depth, and real interest rate are found to promote economic efficiency, while other policy variables are found to hinder it.

Subject: Commercial banks, Economic sectors, Exchange rates, Exports, Financial services, Foreign exchange, International trade, Multilateral development institutions, Public sector, Real exchange rates, Real interest rates

Keywords: Asia and Pacific, banking system, equation estimate, Exchange rates, Exports, GDP ratio, investment ratio, investment ratio equation, Middle East, North Africa, Public sector, Real exchange rates, Real interest rates, real rate of interest, real value, Sub-Saharan Africa, Western Hemisphere, WP

Pages:
36
Volume:
1992
DOI:
https://doi.org/10.5089/9781451847307.001
Issue:
053
Series:
Working Paper No. 1992/053
Stock No:
WPIEA0531992
ISBN:
9781451847307
ISSN:
1018-5941

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Notes

Examines the effects of selected policies on economic efficiency in 81 developing countries by pooling cross-country data over various subperiods between 1961-90.

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