EconPapers    
Economics at your fingertips  
 

Uncertainty, Economic Reforms and Private Investment in the Middle East and North Africa

Ahmet Aysan, Gaobo Pang () and Marie-Ange Véganzonès

MPRA Paper from University Library of Munich, Germany

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.

Keywords: Private Investment; Economic Reforms; Middle East and North Africa (search for similar items in EconPapers)
JEL-codes: F40 E00 E60 (search for similar items in EconPapers)
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16) Track citations by RSS feed

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/5482/1/MPRA_paper_5482.pdf original version (application/pdf)

Related works:
Journal Article: Uncertainty, economic reforms and private investment in the Middle East and North Africa (2009) Downloads
Working Paper: Uncertainty, Economic Reforms and Private Investment in the Middle East and North Africa (2009)
Working Paper: Uncertainty, Economic Reforms and Private Investment in the Middle East and North Africa (2006) Downloads
Working Paper: Uncertainty, Economic Reforms and Private Investment in the Middle East and North Africa (2006)
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:pra:mprapa:5482

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().

 
Page updated 2020-11-12
Handle: RePEc:pra:mprapa:5482