Trends in Private Investment in Developing Countries : Statistics for 1970-1998
This discussion paper examines in its first part, the role of private investment in economic growth. While theoretical growth models developed in the economics literature, make no distinction between private, and public components of investment, th...
| Main Authors: | , |
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| Format: | Publication |
| Language: | English en_US |
| Published: |
Washington, DC: World Bank and the International Finance Corporation
2013
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2000/06/1620970/trends-private-investment-developing-countries-statistics-1970-1998 http://hdl.handle.net/10986/13986 |
| Summary: | This discussion paper examines in its
first part, the role of private investment in economic
growth. While theoretical growth models developed in the
economics literature, make no distinction between private,
and public components of investment, there is an emerging
appreciation that private investment is more efficient, and
productive tan public investment. Results from the recent
empirical literature, updated here with the recent data on
private investment, suggest that private investment has a
stronger association with long run economic growth than
public investment. The second part shows trends in private,
and public fixed investment in fifty developing countries.
On average, the ratio of private investment to GDP continued
its upward trend, reaching record levels in 1998, the most
recent year for which comparable data exist. That year,
average private investment reached 14.3 percent of GDP, but
public investment, fell to only 7.0 percent of GDP, its
lowest level since 1974. |
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