Cover IMF Working Papers
Buy Book in Print
Public Policies and Private Savings and Investment in Sub-Saharan Africa: An Empirical Investigation
Author:
Mr. Dhaneshwar Ghura
Search for other papers by Mr. Dhaneshwar Ghura in
Current site
Google Scholar Close
and
Mr. Michael T. Hadjimichael
Search for other papers by Mr. Michael T. Hadjimichael in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 1995: Issue 019
Language:
English
Publication Date:
01 Feb 1995
DOI:
https://doi.org/10.5089/9781451922523.001
ISBN:
9781451922523
ISSN:
1018-5941
Pages:
48
Keywords:
WP; broad money; government investment; rate of inflation; government investment ratio; substitution effect; investment ratio; dependency ratio; GDP ratio; government savings; investment decision; investment model; investment expenditure; government investment expenditure; age dependency ratio; Private investment; Private savings; Real effective exchange rates; Government debt management; Income; Sub-Saharan Africa; Africa
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.
Download PDF (2.9 MB) Download Epub
This paper assesses empirically the role of public policies in stimulating private savings and investment in sub-Saharan African countries, based on data for the period 1986-92. The main findings of the analysis are as follows: (i) policies effective in stimulating private savings and investment include those that keep the rate of inflation low, reduce macroeconomic uncertainty, promote financial deepening, and lower the external debt burden; (ii) measures that promote structural reforms and reduce the budget deficit (without lowering government investment) help to raise private investment; and (iii) declines in government savings are only partially offset by increases in private savings.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund