EconPapers    
Economics at your fingertips  
 

Assessing the Responsiveness of Private Investment to Economic Reforms: The Case of MENA Countries

Marie-Ange Véganzonès, Pang and Ahmet Aysan ()

No 200623, Working Papers from CERDI

Abstract: During the 1980s and the 1990s, private investment in the Middle East and North Africa (MENA) has on average shown a decreasing or stagnant trend. This contrasts with the situation of the Asian economies, where private investment has always been more dynamic. In this paper, it is empirically shown for a panel of 39 developing economies--among which four MENA countries-- that in addition to the traditional determinants of investment--such as the growth anticipations and the real interest rate--government policies explain MENA’s low investment rate. Insufficient structural reforms--which have most of the time led to poor financial development and deficient trade openness¬¬--have been a crucial factor for the deficit in private capital formation. The economic uncertainties of the region have represented another factor of the firm’s decisions not to invest. These uncertainties have consisted of the external debt burden and various measures of volatility.

Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://publi.cerdi.org/ed/2006/2006.23.pdf (application/pdf)

Related works:
Working Paper: Assessing the Responsiveness of Private Investment to Economic Reforms: The Case of MENA Countries (2011) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cdi:wpaper:851

Access Statistics for this paper

More papers in Working Papers from CERDI Contact information at EDIRC.
Bibliographic data for series maintained by Vincent Mazenod ().

 
Page updated 2019-08-04
Handle: RePEc:cdi:wpaper:851