Economic Security, Private Investment, and Growth in Developing Countries
January 1, 1998
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Summary
This paper provides empirical support for the view that enhanced economic security fosters private investment and growth in developing countries. An analysis for 53 developing countries suggests that most aspects of economic security have improved since the mid-1980s; that private investment is mostly influenced by the risk of expropriation, the degree of civil liberty, and the degree of independence of the bureaucracy; and that economic growth is affected by the risk of expropriation and political terrorism in the short run, and by corruption and contract repudiation in the long run.
Subject: Corruption, Crime, Expenditure, Financial institutions, National accounts, Private investment, Public investment spending, Return on investment, Securities
Keywords: Africa, coefficient estimate, Corruption, country, country dummy, country effect, Eastern Europe, equation, estimate, Growth, investment project, investment rate, Middle East, panel estimation result, Political Economy, Private Investment, Public investment spending, Return on investment, Securities, Western Hemisphere, WP
Pages:
31
Volume:
1998
DOI:
Issue:
004
Series:
Working Paper No. 1998/004
Stock No:
WPIEA0041998
ISBN:
9781451842012
ISSN:
1018-5941
