 Governance institutions and Private Investment: An Application to the Middle East and North AfricaMarie-Ange Véganzonès, Ahmet Aysan and Mustapha Kamel Nabli Post-Print from HAL Abstract: This paper addresses the issue of the low level of private investment in the Middle East and North Africa (MENA) region, with special emphasis on the role of governance. Based on the existing published reports, we categorize what types of governance institutions are more detrimental to entrepreneurial investments. We then estimate a simultaneous model of private investment and governance quality where economic policies concurrently explain both variables. Our empirical results show that governance plays a significant role in private investment decisions. This result is particularly true in the case of "administrative quality" in the form of control of corruption, bureaucratic quality, investment-friendly profile of administration, law and order, as well as for "political stability." Evidence in favor of "public accountability" is also found. Our estimations also stress that structural reforms like financial development, trade openness, and human development affect private investment decisions directly, and/or through their positive effect on governance. Date: 2007 Published in Developing Economies, 2007, 45 (3), pp.339- 377. ⟨10.1111/j.1746-1049.2007.00042.x⟩ There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00171771 DOI: 10.1111/j.1746-1049.2007.00042.x Access Statistics for this paper More papers in Post-Print from HAL |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.