Abstract

During the past two decades, sub-Saharan Africa has lagged behind other developing regions in economic performance. However, the important overall indicators of performance have masked wide differences among subgroups of countries in the region. On the whole, African countries that have effectively implemented comprehensive adjustment and reform programs have shown better results. The divergence in performance among the various country groups has primarily reflected differences in their policy response to the deterioration in the terms of trade, as well as in progress made toward promoting macroeconomic stability, improving external competitiveness, and alleviating structural and institutional impediments to private sector activity.

During the past two decades, sub-Saharan Africa has lagged behind other developing regions in economic performance. However, the important overall indicators of performance have masked wide differences among subgroups of countries in the region. On the whole, African countries that have effectively implemented comprehensive adjustment and reform programs have shown better results. The divergence in performance among the various country groups has primarily reflected differences in their policy response to the deterioration in the terms of trade, as well as in progress made toward promoting macroeconomic stability, improving external competitiveness, and alleviating structural and institutional impediments to private sector activity.

The adjustment experience of sub-Saharan Africa has demonstrated that to achieve gains in real per capita GDP an expansion in private saving and investment is key. Total and private saving and investment are still too low in relation to GDP to finance a satisfactory and sustainable expansion in output. Furthermore, in view of the modest share of foreign direct investment currently channeled to sub-Saharan Africa and of the need to reduce dependence on foreign aid, more resources required to boost economic growth will have to be generated by the domestic private sector. Thus, the domestic private sector is essential in accelerating output growth and narrowing the gap in per capita incomes relative to other developing countries.

Accordingly, public policies need to be aimed at creating an environment conducive to private sector development. A critical issue in this regard is the extent to which changes in public policies can effectively stimulate private saving and investment in the region.

The four papers presented below are part of an effort to examine this question. They comprise a cross-country analysis and three case studies. The cross-country analysis assesses empirically the role of public policies in stimulating private saving and investment in sub-Saharan Africa in 1986–92. This analysis reveals that (1) policies effective in stimulating private saving and investment include those that keep the rate of inflation low, reduce macroeconomic uncertainty, promote financial deepening, and lower the external debt burden, (2) measures that promote structural reforms and reduce the fiscal deficit (without lowering government investment) help to raise private investment, and (3) declines in government saving are only partially offset by increases in private saving.

The case studies discuss the experiences of three countries during periods of adjustment efforts: Ghana in 1983–91, Senegal in 1978–93, and Uganda in 1987–94. These papers were prepared in the course of the policy dialogue between the Fund and member countries; the first two were also part of a set of background studies to a recent wider survey of experience.

The three case studies show that while these countries have made considerable progress, they still have a long way to go. In Ghana, the economy could have benefited significantly more “if inflation had been brought under control and if a wider range of structural adjustment measures had been implemented earlier.” In Senegal, “economic growth has remained erratic and saving and investment ratios have been relatively low.” Finally, Uganda “still needs to raise both its domestic saving and its investment efforts and to rigorously pursue structural reform programs.” All this underlines the need to take fully into account the medium-term nature of the adjustment and reform process.

The overall message, nevertheless, is positive. All three case studies indicate that progress has been made in enhancing an efficient use of resources, while the uneven success in mobilizing domestic resources should be seen as a call for more sustained and consistent policies. Indeed, as brought out in the cross-country paper, public policies aimed at keeping the rate of inflation low, reducing economic uncertainty, and promoting financial deepening can have significant and positive effects on private saving and investment. Appropriate policies can improve growth prospects, provided programs are, from the start, firmly and constantly imbedded in a medium-term perspective.

The African Experience
  • Abbey, J.L.S., “Ghana’s Experience with Structural Adjustment: Some Lessons,” in Towards Economic Recovery in Sub-Saharan Africa, ed. by J. Picket H. Singer (London: Routledge, 1990).

    • Search Google Scholar
    • Export Citation
  • Agarwala, R., “Price Distortions and Growth in Developing Countries,” World Bank Staff Working Paper No. 575 (Washington: World Bank, 1983).

    • Search Google Scholar
    • Export Citation
  • Aghevli, Bijan, and others The Role of National Saving in the World Economy: Recent Trends and Prospects, IMF Occasional Paper 67 (Washington: International Monetary Fund, March 1990.

    • Search Google Scholar
    • Export Citation
  • Anand, R., S. van Wijnbergen, “Inflation and the Financing of Government Expenditure: An Introductory Analysis with Application to Turkey,” The World Bank Economic Review, Vol. 3, No. 1 (1989), pp. 17 –38.

    • Search Google Scholar
    • Export Citation
  • Ando, Albert, and Franco Modigliani, “The ‘Life Cycle’ Hypothesis of Saving: Aggregate Implications and Tests,” American Economic Review, Vol. 53 (1963), pp. 5584.

    • Search Google Scholar
    • Export Citation
  • Aryeetey, E., “Macroeconomic Reforms, Instability and Private Investment in Ghana,” Research Workshop of the African Research Consortium, Nairobi, December 1993a.

    • Search Google Scholar
    • Export Citation
  • Aryeetey, E., “Savings in Ghana,” World Bank Financial Sector Review (Washington: World Bank, 1993b).

  • Asilis, Cavlos, and Atish R. Ghosh, “The Savings Trap and Economic Take-Off,” IMF Working Paper 92/91 (Washington: International Monetary Fund, November 1992).

    • Search Google Scholar
    • Export Citation
  • Barro, Robert J. “Economic Growth in a Cross-Section of Countries,” NBER Working Paper No. 2855 (Cambridge, Massachusetts: National Bureau of Economic Research, February 1989).

    • Search Google Scholar
    • Export Citation
  • Barro, Robert J., “Are Government Bonds Net Wealth?” Journal of Political Economy, Vol. 82 (1974), pp. 10951117.

  • Barro, Robert J., “Rational Expectations and the Role of Monetary Policy,” Journal of Monetary Economics, Vol. 2 (1976), pp. 132.

    • Search Google Scholar
    • Export Citation
  • Barro, Robert J. “A Capital Market in an Equilibrium Business Cycle Model,” Econometrics, Vol. 48 (1980), pp. 13931417.

  • Bernanke, Ben, “Irreversibility, Uncertainty, and Cyclical Investment.” Quarterly Journal of Economics, Vol. 98 (1983), pp. 85106.

    • Search Google Scholar
    • Export Citation
  • Blanchard, Olivier J., and Stanley Fischer, Lectures in Macroeconomics (Cambridge, Massachusetts: MIT Press, 1989).

  • Blejer, Mario I., and Mohsin S. Khan, “Government Policy and Private Investment in Developing Countries,” Staff Papers, International Monetary Fund, Vol. 31 (1984), pp. 379403.

    • Search Google Scholar
    • Export Citation
  • Borensztein, Eduardo, “Debt Overhang, Credit Rationing and Investment,” Journal of Development Economics, Vol. 32 (1990a), pp. 315335.

    • Search Google Scholar
    • Export Citation
  • Borensztein, Eduardo “Debt Overhang, Debt Reduction and Investment: The Case of the Philippines,” IMF Working Paper 90/77 (Washington: International Monetary Fund, September 1990b).

    • Search Google Scholar
    • Export Citation
  • Breusch, T. S., A. R. Pagan, “A Simple Test for Heteroscedasticity and Random Coefficient Variation,” Econometrica, Vol. 49 (1979), pp. 128794.

    • Search Google Scholar
    • Export Citation
  • Bruno, M., W. Easterly, “Inflation Crises and Long-Run Growth,” World Bank Draft Working Paper (Washington: World Bank, November 1994).

    • Search Google Scholar
    • Export Citation
  • Buse, A., “Goodness of Fit in the Generalized Least Squares Estimation,” American Statistician, Vol. 27 (1973), pp. 106108.

  • Cardoso, Eliana, “Macroeconomic Environment and Capital Formation in Latin America,” in Striving for Growth after Adjustment: The Role of Capital Formation, ed. Luis Servén Andres Solimano (Washington: World Bank, 1993).

    • Search Google Scholar
    • Export Citation
  • Collins, Susan M., “Savings Behavior in Ten Developing Countries,” Discussion Paper No. 1442, Harvard Institute for Economic Development (Cambridge, Massachusetts: Harvard University, 1989).

    • Search Google Scholar
    • Export Citation
  • Commander, S., C.U. Estrada, “What Seems Right and What Seems Wrong with Ghana’s Labor Market” (Washington: World Bank, 1992).

  • Corbo, Vittorio, and Stanley Fischer, “Structural Adjustment, Stabilization and Policy: Domestic and International Finance,” in Handbook of Development Economics, Vol. III, ed. by J. Behrman and T.N. Srinivasan (New York: Elsevier, 1994).

    • Search Google Scholar
    • Export Citation
  • Corbo, Vittorio, and Stanley Fischer, “Adjustment Lending and Bank Support: Rationale and Main Results,” World Bank Working Paper WPS 582 (Washington: World Bank, 1991).

    • Search Google Scholar
    • Export Citation
  • Corbo, Vittorio, and Klaus Schmidt-Hebbel, “Public Policies and Saving in Developing Countries,” Journal of Development Economics, No. 36 (1991), pp. 89115.

    • Search Google Scholar
    • Export Citation
  • Davis, J., Tait, “Institutional Impediments to Workforce Retrenchment and Restructuring in Ghana’s State Enterprises,” World Development, Vol. 19, No. 8 (1991), pp. 9871005.

    • Search Google Scholar
    • Export Citation
  • Deaton, Angus, “Saving in Developing Countries: Theory and Review,” in Proceedings of the World Bank Annual Conference on Development Economics, 1989 (Washington: World Bank, 1990).

    • Search Google Scholar
    • Export Citation
  • Easterly, W. and others “Good Policy or Good Luck,” Journal of Monetary Economics, Vol. 32 (1993), pp. 45983.

  • Easterly, W., and Klaus Schmidt-Hebbel, “Fiscal Deficits and Macroeconomic Performance in Developing Countries,” The World Bank Research Observer, Vol. 8 (1993), pp. 211237.

    • Search Google Scholar
    • Export Citation
  • Eaton, Jonathan, “Public Debt Guarantees and Private Capital Flight,” World Bank Economic Review, Vol. 1 (1987), pp. 37795.

  • Fischer, Stanley “Macroeconomics, Development, and Growth,” NBER Macroeconomics Annual (1991), pp. 32964.

  • Fischer, Stanley “The Role of Macroeconomic Factors in Growth,” Journal of Monetary Economics, Vol. 32 (1993), pp. 485512.

  • Fosu, Augustin Kwasi, “Political Instability and Economic Growth: Evidence from Sub-Saharan Africa,” Economic Development and Cultural Change, Vol. 39 (1992), pp. 82941.

    • Search Google Scholar
    • Export Citation
  • Fry, Maxwell J., “Money and Capital or Financial Deepening in Economic Development?” Journal of Money Credit and Banking, Vol. 10 (1978), pp. 46475.

    • Search Google Scholar
    • Export Citation
  • Fry, Maxwell J., “Saving, Investment, Growth and the Cost of Financial Repression,” World Development, Vol. 8 (1980), pp. 31727.

  • Fry, Maxwell J., “Terms of Trade Dynamics in Asia: An Analysis of National Saving and Domestic Investment Responses to Terms of Trade Changes in 14 Asian LDCs,” Journal of International Money and Finance, Vol. 5 (1986), pp. 5773.

    • Search Google Scholar
    • Export Citation
  • Fry, Maxwell J., “Foreign Debt Instability: An Analysis of National Saving and Domestic Investment Responses to Foreign Debt Accumulation in 28 Developing Countries”, Journal of International Money and Finance, Vol. 8 (1989), pp. 31544.

    • Search Google Scholar
    • Export Citation
  • Gersovitz, Mark, “Saving and Development,” in Handbook of Development, ed. by H. Chenery and T.N. Srinivasan (New York: North-Holland, 1988).

    • Search Google Scholar
    • Export Citation
  • Ghura, Dhaneshwar, and Thomas J. Grennes, “The Real Exchange Rate and Macroeconomic Performance in Sub-Saharan Africa,” Journal of Development Economics, Vol. 42 (1993), pp. 15574.

    • Search Google Scholar
    • Export Citation
  • Giovannini, Alberto “The Interest Elasticity of Savings in Developing Countries: The Existing Evidence,” World Development, Vol. 11 (1983), pp. 60107.

    • Search Google Scholar
    • Export Citation
  • Giovannini, Alberto “Saving and the Real Interest Rate in LDCs,” Journal of Development Economics, Vol. 18 (1985), pp. 197218.

  • Government of Ghana, From Economic Recovery to Accelerated Growth, June 1993.

  • Greene, Joshua, Delano Villanueva, “Private Investment in Developing Countries: An Empirical Analysis,” Staff Papers, International Monetary Fund, Vol. 38 (1991), pp. 3358.

    • Search Google Scholar
    • Export Citation
  • Gupta, K. “Aggregate Savings, Financial Intermediation, and Interest Rate,” Review of Economics and Statistics, Vol. 69 (1987), pp. 30311.

    • Search Google Scholar
    • Export Citation
  • Hadjimichael, M. T., and D. Ghura, “Public Policies and Private Savings and Investment in Sub-Saharan Africa: An Empirical Investigation,” IMF Working Paper 95/19 (Washington: International Monetary Fund, 1995).

    • Search Google Scholar
    • Export Citation
  • Hadjimichael, M. T., and others Sub-Saharan Africa: Growth, Savings, and Investment, 1986–93, Occasional Paper 118 (Washington: International Monetary Fund, January 1995).

    • Search Google Scholar
    • Export Citation
  • Hammer, Jeffrey S., “Population Growth and Savings in LDCs: A Survey Article,” World Development, Vol. 14 (1986), pp. 57993.

  • Haque, Nadeem Ul, Peter Montiel, “Consumption in Developing Countries: Tests for Liquidity Constraints and Finite Horizons,” Review of Economics and Statistics, Vol. 71 (1989), pp. 40815.

    • Search Google Scholar
    • Export Citation
  • Haque, Nadeem Ul, Peter Montiel, “Capital Mobility in Developing Countries: Some Empirical Tests,” IMF Working Paper 90/117 (Washington: International Monetary Fund, December 1990).

    • Search Google Scholar
    • Export Citation
  • Harberger, Arnold C., “Currency Depreciation, Income, and the Balance of Trade,” Journal of Political Economy, Vol. 58 (1950), pp. 4760.

    • Search Google Scholar
    • Export Citation
  • Heller, Peter, Richard Haas, and Ahsan Mansur, A Review of the Fiscal Impulse Measure, IMF Occasional Paper 44 (Washington: International Monetary Fund, 1986).

    • Search Google Scholar
    • Export Citation
  • Hsiao, Cheng, Analysis of Panel Data (Cambridge: Cambridge University Press, 1986).

  • Hussain, Ishrat, and Rashit Faruqee (eds.), Adjustment in Africa: Lessons from Country Case Studies (Washington: World Bank, 1994).

  • International Monetary Fund, Interest Rate Policy in Developing Countries, IMF Occasional Paper 67 (Washington: International Monetary Fund, October 1983).

    • Search Google Scholar
    • Export Citation
  • International Monetary Fund, World Economic Outlook, May 1993, World Economic and Financial Surveys (Washington: International Monetary Fund, May 1993a).

    • Search Google Scholar
    • Export Citation
  • International Monetary Fund, World Economic Outlook, October 1993, World Economic and Financial Surveys (Washington: International Monetary Fund, October 1993b).

    • Search Google Scholar
    • Export Citation
  • International Monetary Fund, World Economic Outlook, May 1994, World Economic and Financial Surveys (Washington: International Monetary Fund, May 1994).

    • Search Google Scholar
    • Export Citation
  • Islam, R., and D. Wetzel, “Ghana: Adjustment, Reform and Growth,” in Capital Mobility: The Impact on Consumption, Investment and Growth, ed. by L. Leiderman and A. Razin (Washington: World Bank, 1994).

    • Search Google Scholar
    • Export Citation
  • Judge, George G., and others The Theory and Practice of Econometrics, 2nd edition (New York: John Wiley and Sons, 1985)

  • Kapur, Ishan, and others, Ghana: Adjustment and Growth, 1983–91, Occasional Paper 86 (Washington: International Monetary Fund, September 1991.

    • Search Google Scholar
    • Export Citation
  • Khan, Moshin S., “Macroeconomic Adjustment in Developing Countries: A Policy Perspective,” Research Observer, Vol. 2 (1987), pp. 2342.

    • Search Google Scholar
    • Export Citation
  • Khan, Moshin S., “The Macroeconomic Effects of Fund-Supported Adjustment Programs: An Empirical Assessment,” Staff Papers, International Monetary Fund, Vol. 37 (1990), pp. 195231.

    • Search Google Scholar
    • Export Citation
  • Killick, T., Development Economics in Action: A Study of Economic Policies in Ghana (London: Heinemann, 1978).

  • King, R., and R. Levine, “Financial Policy Indicators and Growth,” Policy Research Working Paper No. 819 (Washington: World Bank, 1992).

    • Search Google Scholar
    • Export Citation
  • King, R., and R. Levine, “Finance and Growth: Schumpeter May Be Right, “Quarterly Journal of Economics, Vol. 58 (1993), pp. 71737.

    • Search Google Scholar
    • Export Citation
  • Kormendi, Roger C., Philip G. Meguire, “Macroeconomic Determinants of Growth: Cross Country Evidence,” Journal of Monetary Economics, Vol. 16 (1985), pp. 14163.

    • Search Google Scholar
    • Export Citation
  • Krueger, Anne O., “Comments,” NBER Macroeconomics Annual (1991), pp. 36468.

  • Lahiri, Ashok K., “Dynamics of Asian Savings: The Role of Growth and Age Structure,” Staff Papers, International Monetary Fund, Vol. 36 (1989), pp. 22861.

    • Search Google Scholar
    • Export Citation
  • Larrain, Felipe, and Rodrigo Vergara, “Investment and Macroeconomic Adjustment: The Case of East Asia,” in Striving for Growth after Adjustment: The Role of Capital Formation, ed. by Luis Servén and Andres Solimano (Washington: World Bank, 1993).

    • Search Google Scholar
    • Export Citation
  • Laursen, Svend, and Lloyd A. Metzler, “Flexible Exchange Rates and the Theory of Employment,” Review of Economics and Statistics, Vol. 32 (1950), pp. 29199.

    • Search Google Scholar
    • Export Citation
  • Leechor, C., “Ghana: Frontrunner in Adjustment,” Adjustment in Africa: Lessons from Country Case Studies, ed. by I. Husain and R. Faruqee (Washington: World Bank, 1994).

    • Search Google Scholar
    • Export Citation
  • Leff, Nathaniel H., “Dependency Rates and Savings Rates,” American Economic Review, Vol. 59 (1969), pp. 88696.

  • Leiderman, Leonardo, and Mario I. Blejer, “Modeling and Testing Ricardian Equivalence: A Survey,” Staff Papers, International Monetary Fund, Vol. 35 (March 1988), pp. 135.

    • Search Google Scholar
    • Export Citation
  • Leith, J.C., Foreign Trade Regimes and Economic Development: Ghana, Vol. 2 (New York: Columbia University Press, 1974).

  • Levine, Ross, and S. Zervos, “Looking at the Facts: What Do We Know from Policy and Growth from Cross-Country Analysis,” Policy Research Working Paper No. 1115 (Washington: World Bank, 1993).

    • Search Google Scholar
    • Export Citation
  • Levine, Ross, and David Renelt, “A Sensitivity Analysis of Cross-Country Growth Regressions,” American Economic Review, Vol. 82 (1992), pp. 94263.

    • Search Google Scholar
    • Export Citation
  • Lindauer, David L., and Ann D. Velenchik, “Government Spending in Developing Countries: Trends, Causes, and Consequences,” World Bank Research Observer, Vol. 7 (1992), pp. 5978.

    • Search Google Scholar
    • Export Citation
  • Lizondo, José Saul, and Peter Montiel, “Contractionary Devaluation in Developing Countries: An Analytical Overview,” Staff Papers, International Monetary Fund, Vol. 36 (1989), pp. 182227.

    • Search Google Scholar
    • Export Citation
  • Maastricht Conference on Africa, Issues Paper (Maastricht, 1990).

  • Mankiw, Gregory, David Romer, and David Weil, “A Contribution to the Empirics of Economic Growth,” Quarterly Journal of Economics, Vol. 107 (May 1992), pp. 40737.

    • Search Google Scholar
    • Export Citation
  • Mason, Andrew, “Saving, Economic Growth, and Demographic Change,” Population and Development, Vol. 14 (1988), pp. 11343.

  • Mathieson, R. J., and L. Rojas-Suarez, “Capital Controls and Capital Account Liberalization in Industrial Countries,” in Capital Mobility: The Impact on Consumption, Investment, and Growth, ed. by L. Leiderman and A. Razin (Cambridge: Cambridge University Press, 1994).

    • Search Google Scholar
    • Export Citation
  • McCarthy, F. D., J. P. Neary, and G. Zanalda, “Measuring the Effect of External Shocks and the Policy Response to Them—Empirical Methodology Applied to the Philippines,” Policy Research Working Paper No. 1271 (Washington: World Bank, March 1994).

    • Search Google Scholar
    • Export Citation
  • McColm, Bruce R., and oOthers, Freedom in the World, Political Rights, and Civil Liberties, 1990–1991 (New York: Freedom House, 1991).

    • Search Google Scholar
    • Export Citation
  • McKinnon, Ronald, Money and Capital in Economic Development (Washington: Brookings Institution, 1973).

  • Nsouli, Saleh, “Structural Adjustment in Sub-Saharan Africa,” Finance & Development (Washington: International Monetary Fund, September 1993).

    • Search Google Scholar
    • Export Citation
  • Obstfeld, Maurice, “Aggregate Spending and the Terms of Trade: Is There a Laursen-Metzler Effect?” Quarterly Journal of Economics, Vol. 97 (1982), pp. 25170.

    • Search Google Scholar
    • Export Citation
  • Ogaki, Masao, Jonathan D. Ostry, Carmen M. Reinhart, “Saving Behavior in Low- and Middle-Income Developing Countries: A Comparison,” IMF Working Paper 95/3 (Washington: International Monetary Fund, January 1995).

    • Search Google Scholar
    • Export Citation
  • Oshikoya, Temitope W., “Macroeconomic Determinants of Domestic Private Investment in Africa: An Empirical Analysis,” Economic Development and Cultural Change, Vol. 42 (1994), pp. 57396.

    • Search Google Scholar
    • Export Citation
  • Ostry, Jonathan D., and Carmen M. Reinhart, “Private Savings and Terms of Trade Shocks: Evidence from Developing Countries,” Staff Papers, International Monetary Fund, Vol. 39 (1992), pp. 495517.

    • Search Google Scholar
    • Export Citation
  • Özler, Sule, and Dani Rodrik, “External Shocks, Politics and Private Investment,” Journal of Development Economics, Vol. 39 (1992), pp. 14162.

    • Search Google Scholar
    • Export Citation
  • Patel, I. G., (ed.), Policies for African Development: From the 1980s to the 1990s (Washington: International Monetary Fund, 1992).

  • Persson, Torsten, and Lars E.O. Svensson, “Current Account Dynamics and the Terms of Trade: Harberger-Laursen-Metzler Two Generations Later,” Journal of Political Economy, Vol. 93 (1985), pp. 4365.

    • Search Google Scholar
    • Export Citation
  • Pindyck, Robert S., “Irreversibility, Uncertainty, and Investment,” in Striving for Growth after Adjustment: The Role of Capital Formation, ed. by Luis Servén and Andres Solimano (Washington: World Bank, 1993).

    • Search Google Scholar
    • Export Citation
  • Ram, Rati, “Dependency Rates and Aggregate Savings: A New International Cross-Section Study,” American Economic Review, Vol. 72 (1982), pp. 34859.

    • Search Google Scholar
    • Export Citation
  • Rama, Martin, “Empirical Investment Equations for Developing Countries,” in Striving for Growth after Adjustment: The Role of Capital Formation, ed. by Luis Servén and Andres Solimano (Washington: World Bank, 1993).

    • Search Google Scholar
    • Export Citation
  • Raut, Lakshmi K., and Arvind Virmani, “Determinants of Consumption and Savings Behavior in Developing Countries,” The World Bank Economic Review, Vol. 3 (1990), pp. 37993.

    • Search Google Scholar
    • Export Citation
  • Rossi, Nicola, “Government Spending, the Real Interest Rate, and the Behavior of Liquidity-Constrained Consumers in Developing Countries,” Staff Papers, International Monetary Fund, Vol. 35 (1988), pp. 10440.

    • Search Google Scholar
    • Export Citation
  • Rossi, Nicola, “Dependency Rates and Private Savings Behavior in Developing Countries,” Staff Papers, International Monetary Fund, Vol. 36 (1989), pp. 16681.

    • Search Google Scholar
    • Export Citation
  • Sakr, Khaled, “Determinants of Private Investment in Pakistan,” IMF Working Paper 93/30 (Washington: International Monetary Fund, March 1993).

    • Search Google Scholar
    • Export Citation
  • Sala-i-Martin, Xavier, “Comments,” NBER Macroeconomics Annual (1991), pp. 36879.

  • Sarris, A., and H. Shams, Ghana Under Structural Adjustment: The Impact on Agriculture and the Rural Poor (New York: New York University Press, IFAD, 1991).

    • Search Google Scholar
    • Export Citation
  • Schadler, Susan, and others, Economic Adjustment in Low-Income Countries: Experience Under the Enhanced Structural Adjustment Facility, Occasional Paper 106 (Washington: International Monetary Fund, September 1993).

    • Search Google Scholar
    • Export Citation
  • Schiff, M., and A. Valdes, “The Plundering of Agriculture in Developing Countries,” Finance and Development, Vol. 32, No. 1 (March 1995).

    • Search Google Scholar
    • Export Citation
  • Schmidt-Hebbel, Klaus, Steven B. Webb, and Giancarlo Corsetti, “Household Saving in Developing Countries: First Cross-Country Evidence,” The World Bank Economic Review, Vol. 6 (1992), pp. 52947.

    • Search Google Scholar
    • Export Citation
  • Seater, John J., “Ricardian Equivalence,” Journal of Economic Literature, Vol. 31 (1993), pp. 14290.

  • Servén, Luis, and Andres Solimano, “Economic Adjustment and Investment Performance in Developing Countries: The Experience of the 1980s,” in Striving for Growth after Adjustment: The Role of Capital Formation, ed. by Luis Servén and Andres Solimano (Washington: World Bank, 1993).

    • Search Google Scholar
    • Export Citation
  • Sharer, Robert L., Hema R. De Zoysa, and Calvin A. McDonald, Uganda: Adjustment with Growth, 1987–94, IMF Occasional Paper 121 (Washington: International Monetary Fund, March 1995).

    • Search Google Scholar
    • Export Citation
  • Shaw, Edward, Financial Deepening in Economic Development (New York: Oxford University Press, 1973).

  • Solimano, Andres, “Understanding the Investment Cycle in Adjustment Programs Evidence from Reforming Economies,” World Bank Working Paper No. 912 (Washington: World Bank, May 1992).

    • Search Google Scholar
    • Export Citation
  • Solimano, Andres, “How Private Investment Reacts to Changing Macroeconomic Conditions: The Case of Chile,” World Bank Working Paper No. 212 (Washington: World Bank, 1989).

    • Search Google Scholar
    • Export Citation
  • Steel, W. F., and L. M. Webster, “Small Enterprises Under Adjustment in Ghana,” Industry and Finance Series, World Bank Technical Paper No. 138 (Washington: World Bank, 1991).

    • Search Google Scholar
    • Export Citation
  • Stockman, Alan C., “Anticipated Inflation and the Capital Stock in a Cash-in-Advance Economy,” Journal of Monetary Economics, Vol. 8 (1981), pp. 38793.

    • Search Google Scholar
    • Export Citation
  • Stryker, J.D., “Ghana,” in Political Economy of Agricultural Pricing Policy: Africa and the Mediterranean, Vol. 3, ed. by A. Krueger, M. Schiff, and A. Valdes (Baltimore: Johns Hopkins University Press, 1991).

    • Search Google Scholar
    • Export Citation
  • Svensson, Lars E.O., and Assaf Razin, “The Terms of Trade and the Current Account: The Harberger-Laursen-Metzler Effect,” Journal of Political Economy, Vol. 91 (1983), pp. 97125.

    • Search Google Scholar
    • Export Citation
  • Thomas, V., and others, Best Practices in Trade Policy Reform (Washington: World Bank, 1991).

  • van Wijnbergen, Sweder, “Aid, Export Promotion and the Real Exchange Rate: An African Dilemma?” CPD Discussion 199 (Washington: World Bank, 1996).

    • Search Google Scholar
    • Export Citation
  • Wai, U., Tun, and Chorng-Huey Wong, “Determinants of Private Investment in Developing Countries,” Journal of Development Studies, Vol. 19 (1982), pp. 1936.

    • Search Google Scholar
    • Export Citation
  • White, H., “A Heteroskedasticity-Consistent Covariance Matrix and a Direct Test for Heteroskedasticity,” Econometrica, Vol. 48 (1980), pp. 721746.

    • Search Google Scholar
    • Export Citation
  • Wickham, Peter, “A Revised Weighing Scheme for Indicators of Effective Exchange Rates,” IMF Working Paper 87/87 (Washington: International Monetary Fund, December 1987).

    • Search Google Scholar
    • Export Citation
  • World Bank, Sub-Saharan Africa: From Crisis to Sustainable Development (Washington: World Bank, 1989).

  • World Bank, “Adjustment Response of Manufacturing under ERP,” Technical Working Paper No. 1 (Washington: World Bank, 1990).

  • World Bank, World Development Report 1991: The Challenge of Development (Oxford: Oxford University Press, 1991).

  • World Bank, Ghana 2000 and Beyond: Setting the Stage for Accelerated Growth and Poverty Reduction (Washington: World Bank, February 1993a).

    • Search Google Scholar
    • Export Citation
  • World Bank, The East Asian Miracle, Economic Growth, and Public Policy (Washington: Oxford University Press, 1993b).

  • World Bank, Adjustment in Africa: Reforms, Results, and the Road Ahead (Oxford: Oxford University Press, 1994).

  • World Bank, “Ghana’s Financial Sector: Missing Link Between Savers and Investors Financial Sector Review” (Washington: World Bank, August 1994).

    • Search Google Scholar
    • Export Citation
  • World Bank, Ghana: Growth, Private Sector, and Poverty Reduction (Washington: World Bank, 1995).

  • World Bank, Senegal: Macroeconomic Update Report, Report No. 11041-SE (Washington: World Bank, June 1993c).

  • World Bank, Senegal: Stabilization, Partial Adjustment and Stagnation, Report No. 11506-SE (Washington: World Bank, September 1993d).

  • Younger, S. D., “Aid and the Dutch Disease: Macroeconomic Management When Everybody Loves You,” World Development, Vol. 20, No. 11 (1992), pp. 15871597.

    • Search Google Scholar
    • Export Citation