IDEAS home Printed from https://ideas.repec.org/a/pal/imfstp/v38y1991i1p33-58.html
   My bibliography  Save this article

Private Investment in Developing Countries: An Empirical Analysis

Author

Listed:
  • Joshua Greene

    (International Monetary Fund)

  • Delano Villanueva

    (International Monetary Fund)

Abstract

The effects of several policy and other macroeconomic variables on the ratio of private investment to gross domestic product in developing countries during 1975-87 is analyzed. Econometric evidence indicates that the rate of private investment is positively related to real GDP growth, level of per capita GDP, and the rate of public sector investment, and negatively related to real interest rates, domestic inflation, the debt-service ratio, and the ratio of debt to GDP. The impact of most variables was greatest before the 1982 debt crisis, but the ratio of debt to GDP has since become more important.

Suggested Citation

  • Joshua Greene & Delano Villanueva, 1991. "Private Investment in Developing Countries: An Empirical Analysis," IMF Staff Papers, Palgrave Macmillan, vol. 38(1), pages 33-58, March.
  • Handle: RePEc:pal:imfstp:v:38:y:1991:i:1:p:33-58
    as

    Download full text from publisher

    File URL: http://www.jstor.org/stable/3867034?origin=pubexport
    File Function: main text
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bischoff, Charles W, 1969. "Hypothesis Testing and the Demand for Capital Goods," The Review of Economics and Statistics, MIT Press, vol. 51(3), pages 354-368, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michaelides, Panayotis G. & Belegri-Roboli, Athena & Economakis, George & Milios, John G., 2005. "The Determinants of Investment Activity in Greece (1960-’99)," MPRA Paper 74548, University Library of Munich, Germany.
    2. Chhibber, Ajay & van Wijnbergen, Sweder, 1988. "Public policy and private investment in Turkey," Policy Research Working Paper Series 120, The World Bank.
    3. Kuper, Gerard H., 1996. "The effects of energy taxes on productivity and employment: The case of the Netherlands," Resource and Energy Economics, Elsevier, vol. 18(2), pages 137-159, June.
    4. Guy V. G. Stevens, 1973. "The multinational firm and the determinants of investment," International Finance Discussion Papers 29, Board of Governors of the Federal Reserve System (U.S.).
    5. Terregrossa, Ralph A., 1997. "Capital depreciation and investment demand," The Quarterly Review of Economics and Finance, Elsevier, vol. 37(1), pages 79-95.
    6. Penson, John B., Jr., 1977. "Response - External Finance: A Necessary Component In Growth Projections For Southern Agriculture," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 9(1), pages 1-3, July.
    7. Loranger, Jean-Guy, 1976. "La théorie néo-classique de la demande de capital : problèmes théoriques de spécification," L'Actualité Economique, Société Canadienne de Science Economique, vol. 52(3), pages 353-374, juillet.
    8. Raj Chetty, 2004. "Interest Rates and Backward-Bending Investment," NBER Working Papers 10354, National Bureau of Economic Research, Inc.
    9. Ignazio Visco, 2005. "From theory to practice in macroeconomic models: post-Keynesian eclecticism," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 58(233-234), pages 67-90.
    10. Öner Günçavdi & Michael Bleaney & Andrew McKay, 1999. "The response of private investment to structural adjustment-a case study of Turkey," Journal of International Development, John Wiley & Sons, Ltd., vol. 11(2), pages 221-239.
    11. Ignazio Visco, 2005. "From theory to practice in macroeconomic models: post-Keynesian eclecticism," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 58(233-234), pages 67-90.
    12. Bitros, George C. & Nadiri, M. Ishaq, 2017. "Elasticities of Business Investment in the U.S. and their Policy Implications: A Disaggregate Approach to Modeling and Estimation," MPRA Paper 80091, University Library of Munich, Germany.
    13. Ignazio Visco, 2005. "Dalla teoria alla pratica nei modelli macroeconomici: l’eclettismo post-keynesiano," Moneta e Credito, Economia civile, vol. 58(230-231), pages 71-96.
    14. Michalski, Raphael Joseph, 1977. "An application of consistent statistical estimation to a nonlinear macroeconomic policy model," ISU General Staff Papers 197701010800007086, Iowa State University, Department of Economics.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:imfstp:v:38:y:1991:i:1:p:33-58. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.palgrave-journals.com/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.