Public Policies and Private Savings and Investment in Sub-Saharan Africa
Author | : Mr.Dhaneshwar Ghura |
Publisher | : International Monetary Fund |
Total Pages | : 48 |
Release | : 1995-02-01 |
ISBN-10 | : 9781451922523 |
ISBN-13 | : 1451922523 |
Rating | : 4/5 (23 Downloads) |
Book excerpt: 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.