Explaining Recent Investment Weakness : Causes and Implications

This article investigates the drivers of investment growth in emerging market and developing economies with a focus on the most recent slowdown over the 2010–2015 period. Using panel regression techniques, we find that the recent investment slowdown in emerging market and developing economies is ass...

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Main Authors: Islamaj, Ergys, Kose, M. Ayhan, Ohnsorge, Franziska, Ye, Lei Sandy
Format: Journal Article
Published: Taylor and Francis 2019
Subjects:
Online Access:http://hdl.handle.net/10986/31547
id okr-10986-31547
recordtype oai_dc
spelling okr-10986-315472021-05-25T10:54:37Z Explaining Recent Investment Weakness : Causes and Implications Islamaj, Ergys Kose, M. Ayhan Ohnsorge, Franziska Ye, Lei Sandy DEVELOPING ECONOMIES EMERGING MARKET ECONOMIES INVESTMENT CLIMATE STRUCTURAL REFORM TERMS OF TRADE FOREIGN DIRECT INVESTMENT POLITICAL RISKS This article investigates the drivers of investment growth in emerging market and developing economies with a focus on the most recent slowdown over the 2010–2015 period. Using panel regression techniques, we find that the recent investment slowdown in emerging market and developing economies is associated with a range of obstacles: weak economic activity, negative terms-of-trade shocks, declining foreign direct investment inflows, elevated private debt burdens, and heightened political risk. This stands in contrast with advanced economies, where weak economic activity is the most important factor. We briefly discuss policy implications of our findings. 2019-04-15T18:50:20Z 2019-04-15T18:50:20Z 2019 Journal Article Emerging Markets Finance and Trade 1540-496X http://hdl.handle.net/10986/31547 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Taylor and Francis Publications & Research :: Journal Article Publications & Research
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
topic DEVELOPING ECONOMIES
EMERGING MARKET ECONOMIES
INVESTMENT CLIMATE
STRUCTURAL REFORM
TERMS OF TRADE
FOREIGN DIRECT INVESTMENT
POLITICAL RISKS
spellingShingle DEVELOPING ECONOMIES
EMERGING MARKET ECONOMIES
INVESTMENT CLIMATE
STRUCTURAL REFORM
TERMS OF TRADE
FOREIGN DIRECT INVESTMENT
POLITICAL RISKS
Islamaj, Ergys
Kose, M. Ayhan
Ohnsorge, Franziska
Ye, Lei Sandy
Explaining Recent Investment Weakness : Causes and Implications
description This article investigates the drivers of investment growth in emerging market and developing economies with a focus on the most recent slowdown over the 2010–2015 period. Using panel regression techniques, we find that the recent investment slowdown in emerging market and developing economies is associated with a range of obstacles: weak economic activity, negative terms-of-trade shocks, declining foreign direct investment inflows, elevated private debt burdens, and heightened political risk. This stands in contrast with advanced economies, where weak economic activity is the most important factor. We briefly discuss policy implications of our findings.
format Journal Article
author Islamaj, Ergys
Kose, M. Ayhan
Ohnsorge, Franziska
Ye, Lei Sandy
author_facet Islamaj, Ergys
Kose, M. Ayhan
Ohnsorge, Franziska
Ye, Lei Sandy
author_sort Islamaj, Ergys
title Explaining Recent Investment Weakness : Causes and Implications
title_short Explaining Recent Investment Weakness : Causes and Implications
title_full Explaining Recent Investment Weakness : Causes and Implications
title_fullStr Explaining Recent Investment Weakness : Causes and Implications
title_full_unstemmed Explaining Recent Investment Weakness : Causes and Implications
title_sort explaining recent investment weakness : causes and implications
publisher Taylor and Francis
publishDate 2019
url http://hdl.handle.net/10986/31547
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