Cover IMF Working Papers
Public and Private Investment and the Convergence of Per Capita Incomes in Developing Countries
Author: Mr. Mohsin S. Khan and Mr. Manmohan S. Kumar
Series:
IMF Working Papers
Volume/Issue:
Volume 1993: Issue 051
Language:
English
Publication Date:
01 Jun 1993
DOI:
https://doi.org/10.5089/9781451847031.001
ISBN:
9781451847031
ISSN:
1018-5941
Pages:
36
Keywords:
WP; foreign direct investment; per capita income; private sector; capital stock
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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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This paper examines the extent to which there has been convergence in real per capita incomes across developing countries during the last two decades. In the analysis particular emphasis is placed on the separate roles played by private and public sector investment in determining both the extent and the speed of convergence. The paper also considers the importance of the stock of human capital, trade orientation, and foreign direct investment in the long-run growth process. Empirical tests are carried out for a large sample of 95 developing countries over the period 1970-90. The results provide support for the notion of differential effects of public and private investment on long-term growth, as well as for the convergence hypothesis.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund