## Economic Security, Private Investment, and Growth in Developing Countries

_IMF Working Papers, January 1, 1998_

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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

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### 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.*

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/economic-security-private-investment-and-growth-in-developing-countries-2456_