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Examining the dimensions of governance that are relevant for private investment

Author

Listed:
  • Quan Vu Le

    (Department of Economics, Albers School of Business and Economics Seattle University, USA.)

  • Meenakshi Rishi

    (Department of Economics, Albers School of Business and Economics Seattle University, USA.)

Abstract

Which types of governance indicators matter the most for private investment? This short paper answers the question by examining the impact of specific governance indicators on private investment in a cross-section of developing economies. Results indicate that an effective government that includes competent and independent civil service and credible governmental policies are positively associated with private investment. Fair and predictable rules of the game that determine the extent to which property rights are protected also facilitate greater private investment. Based on this the paper concludes that since some indicators of governance matter more than others, targeted institutional reform that focuses first on the significant dimensions may be key to facilitating private investment in developing areas.

Suggested Citation

  • Quan Vu Le & Meenakshi Rishi, 2010. "Examining the dimensions of governance that are relevant for private investment," Business and Economic Horizons (BEH), Prague Development Center, vol. 1(1), pages 1-5, April.
    • Handle: RePEc:pdc:jrnbeh:v:1:y:2010:i:1:p:1-5
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    References listed on IDEAS

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    More about this item

    Keywords

    Private investment; governance; developing economies;
    All these keywords.

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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