Public Policies and Private Savings and Investment in Sub-Saharan Africa: An Empirical Investigation
Summary:
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.
Series:
Working Paper No. 1995/019
Subject:
Foreign exchange Government debt management Income National accounts Private investment Private savings Public financial management (PFM) Real effective exchange rates
Notes:
Based on data for the period 1986-92.
English
Publication Date:
February 1, 1995
ISBN/ISSN:
9781451922523/1018-5941
Stock No:
WPIEA0191995
Pages:
48
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