Cover IMF Working Papers
Savings, Investment, and Growth in Eastern Europe
Author:
Mr. Peter J Montiel
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and
Mr. Eduardo Borensztein
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Series:
IMF Working Papers
Volume/Issue:
Volume 1991: Issue 061
Language:
English
Publication Date:
01 Jun 1991
DOI:
https://doi.org/10.5089/9781451964950.001
ISBN:
9781451964950
ISSN:
1018-5941
Pages:
35
Keywords:
WP; investment demand; investment decision; debtor country; market economy; production function; consumer durables; Privatization; Private savings; Private investment; Public sector; Eastern Europe
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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Even modest investment rates may achieve satisfactory rates of growth in the reforming economies of Eastern Europe because their relative capital scarcity implies high rates of productivity for capital. The most serious obstacle to private investment is uncertainty about the reform process, which can potentially rule out all but the most profitable projects. This problem sharply increases the payoff from accelerating the structural reform process. Regarding savings, critical aspects are the changes in methods of financing resulting from economic reform, and the availability of foreign savings, both in the form of loans and foreign direct investment.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 1991: Issue 061