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Ken Miyajima
Econometric results suggest that Qatar’s strong capital spending multiplier became less impactful as the stock of capital rose to a high level, likely as the marginal impact declined. This supports Qatar’s strategy to shifts the State’s role to an enabler of private sector-led growth, focusing on expenditure to support build human capital and implementation of broader reform guided by the Third National Development Strategy.
Ernesto Crivelli
Recent literature has explored the relationship between efficiency-adjusted public capital and economic growth. A debate on whether capital grants, and especially EU funds actually contribute to growth has gained prominence lately. This paper empirically assesses the relationship between the quality of public investment, capital grants, and growth in a sample of 43 emerging and peripheral economies over 1991-2015. To this end, the contribution of public capital to growth is estimated using efficiency-adjusted public capital stock series, constructed reflecting the quality of public investment management institutions. In addition, the determinants of effective public investment are analyzed. The results suggest that capital grants contribute positively to effective public investment, and the latter is significant in explaining variations in economic growth. Finally, the paper illustrates the impact of raising EU funds absorption on potential growth in emerging and peripheral EU countries.
International Monetary Fund
This paper examines Ghana’s Fourth Review Under the Poverty Reduction and Growth Facility and Requests for Waiver of Performance Criteria and for Extension of the Commitment Period. Most end-August 2001 quantitative performance criteria were met, but waivers are requested for nonobservance of two structural performance criteria and the ceilings on short-term official external debt and the stock of arrears in the road sector. The authorities’ program for 2002 seeks to consolidate on the macroeconomic gains of 2001, accelerate structural reforms, and create the conditions for faster growth and poverty reduction.