Savings, Investment, and Growth in Eastern Europe

June 1, 1991

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Format: Chicago

Peter J Montiel, and Eduardo Borensztein. Savings, Investment, and Growth in Eastern Europe, (USA: International Monetary Fund, 1991) accessed September 26, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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.

Subject: Economic sectors, Labor, National accounts, Private investment, Private savings, Privatization, Public sector

Keywords: Consumer durables, Debtor country, Eastern Europe, Investment decision, Investment demand, Market economy, Private investment, Private savings, Privatization, Production function, Public sector, WP

Publication Details

Pages:

35
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1991/061
Stock No:

WPIEA0611991
ISBN:

9781451964950
ISSN:

1018-5941

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