What Type of Perceived Governance Institutions Matters the Most for Private Investment in the Middle East and North Africa

Marie-Ange Véganzonès, Ahmet Aysan and Zeynep Ersoy

Post-Print from HAL

Abstract: By using a simultaneous equations model, this paper establishes that the perceived quality of governance, which is measured by three different indicators "Quality of Administration", "Public Accountability" and "Political Stability", has a positive effect on the private investment decisions in the developing countries. Our model allows us to point out the fact that the mechanisms through which each type of indicator affects private investment are different. In addition to our primary result we also show that Middle East and North Africa (MENA) region could have attained a better private investment performance if it had reached a more advanced level of perceived institutions in last two decades. The low level of public accountability, among other governance deficiencies, was predominantly responsible for the deficiency in private investment in MENA.

Date: 2007
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Published in Bogazici University Research Papers, Istanbul, 2007, ISS/EC 2007-01, pp.18

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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:hal:journl:hal-00229739

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD (hal@ccsd.cnrs.fr).