What Types of Perceived Governance Indicators Matter the Most for Private Investment in Middle East and North Africa
AbstractBy using a simultaneous equations model, this paper establishes that the perceived quality of governance, which is measured by three different indicators “Quality of Administration”, “Public Accountability” and “Political Stability”, has a positive effect on the private investment decisions in the developing countries. Our model allows us to point out the fact that the mechanisms through which each type of indicator affects private investment are different. In addition to our primary result we also show that Middle East and North Africa (MENA) region could have attained a better private investment performance if it had reached a more advanced level of perceived institutions in last two decades. The low level of public accountability, among other governance deficiencies, was predominantly responsible for the deficiency in private investment in MENA.
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Date of creation: 18 Jan 2011
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Other versions of this item:
- Ahmet Aysan & Marie-Ange Véganzonès –Varoudakis & Zeynep Ersoy, 2007. "What Types of Perceived Governance Indicators Matter the Most for Private Investment in Middle East and North Africa," Economics Bulletin, AccessEcon, vol. 5(8), pages 1-16.
- Marie-Ange VEGANZONES-VAROUDAKIS & Ahmet Faruk AYSAN & Zeynep ERSOY, 2008. "What Types of Perceived Governance Indicators Matter the Most for Private Investment in Middle East and North Africa," Working Papers 200802, CERDI.
- Ahmet Faruk Aysan & Zeynep Ersoy & M-A Veganzones-Varoudakis, 2007. "What Types of Perceived Governance Indicators Matter the Most for Private Investment in Middle East and North Africa," Working Papers 2007/01, Bogazici University, Department of Economics.
- E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-01-30 (All new papers)
- NEP-ARA-2011-01-30 (MENA - Middle East & North Africa)
- NEP-CWA-2011-01-30 (Central & Western Asia)
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