Economic Security, Private Investment, and Growth in Developing Countries
IMF Working Papers, January 1, 1998
Source details
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- Economic Security, Private Investment, and Growth in Developing Countries
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Bibliographic details
- Authors: Hélène Poirson
- Published: January 1, 1998
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451842012.001
Summary / Main conclusion
- Enhanced economic security fosters private investment and growth in developing countries.
- Analysis covers 53 developing countries.
- Most aspects of economic security have improved since the mid-1980s.
Empirical findings on private investment
- Private investment is mostly influenced by:
- the risk of expropriation
- the degree of civil liberty
- the degree of independence of the bureaucracy
Empirical findings on economic growth
- Short-run determinants:
- the risk of expropriation
- political terrorism
- Long-run determinants:
- corruption
- contract repudiation
Thematic implications
- Improvements in economic security are associated with higher private investment and growth outcomes.
- Different components of economic security matter for investment versus growth, and their effects differ by time horizon (short run versus long run).
Key statistics and scope
- Sample: 53 developing countries.
- Timeframe referenced for trend: since the mid-1980s.
Hélène Poirson, "Economic Security, Private Investment, and Growth in Developing Countries", IMF Working Paper, January 1, 1998.
Content in this bundle
- Economic Security, Private Investment, and Growth in Developing Countries - WP/98/4