Real Exchange Rate Uncertainty And Private Investment In Developing Countries

Author : Luis Servén
Publisher : World Bank Publications
Page : 24 pages
File Size : 45,7 Mb
Release : 2002
Category : Capital stock
ISBN : 8210379456XXX

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Real Exchange Rate Uncertainty and Private Investment in Developing Countries by Luis Servén Pdf

Serven examines empirically the link between real exchange rate uncertainty and private investment in developing countries using a large cross country-time series data set. He builds a GARCH-based measure of real exchange rate volatility and finds that it has a strong negative impact on investment, after controlling for other standard investment determinants and taking into account their potential endogeneity. The impact of uncertainty is not uniform, however. There is some evidence of threshold effects, so that uncertainty only matters when it exceeds some critical level. In addition, the negative impact of real exchange rate uncertainty on investment is significantly larger in economies that are highly open and in those with less developed financial systems.

Author : Luis Servén
Publisher : Unknown
Page : 21 pages
File Size : 40,5 Mb
Release : 2016
Category : Electronic
ISBN : OCLC:1290704497

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Real Exchange Rate Uncertainty and Private Investment in Developing Countries by Luis Servén Pdf

Serven examines empirically the link between real exchange rate uncertainty and private investment in developing countries using a large cross country-time series data set. He builds a GARCH-based measure of real exchange rate volatility and finds that it has a strong negative impact on investment, after controlling for other standard investment determinants and taking into account their potential endogeneity. The impact of uncertainty is not uniform, however. There is some evidence of threshold effects, so that uncertainty only matters when it exceeds some critical level. In addition, the negative impact of real exchange rate uncertainty on investment is significantly larger in economies that are highly open and in those with less developed financial systems.This paper - a product of the Office of the Chief Economist, Latin America and the Caribbean Region - is part of a larger effort in the region to assess the effects of macroeconomic volatility.

Author : Anonim
Publisher : World Bank Publications
Page : 49 pages
File Size : 40,6 Mb
Release : 2024-06-30
Category : Electronic
ISBN : 8210379456XXX

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Adjustment, Investment, and the Real Exchange Rate in Developing Countries by Anonim Pdf

LDC adjustment packages Riccardo Faini and Jaime de Melo Developing countries have been hit by a fall in their terms of trade, high real interest rates on their external debt, and a drought in commercial lending from abroad. Their subsequent adjustment packages, often supported by loans from the IMF and World Bank, focused on a sharp real exchange rate depreciation to restore external balance and a host of microeconomic reforms to secure a simultaneous supply-side improvement. This paper examines the success of these ‘adjustment with growth' packages in a large sample of developing countries. We find these packages have been much more successful in LDCs which export manufactures than they have in those concentrating on primary exports (primarily low-income African countries); the latter have not resumed sustainable growth, and most of their external adjustment has arisen from expenditure reduction, not an increase in supply. The longer-term prospects for manufacturing exporters are also brighter: there we detect signs of increased efficiency and a smaller decline in investment than in primary exporters. But we also find that a high external debt burden and an unstable macroeconomic environment impede investment in all LDCs. In the longer term, adjustment with growth packages will succeed only if they are accompanied by a more stable macroeconomic environment and appropriate debt relief

Author : A. Chhibber,M. Dailami,N. Shafik
Publisher : Elsevier
Page : 256 pages
File Size : 53,9 Mb
Release : 2013-10-22
Category : Business & Economics
ISBN : 9781483291345

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Reviving Private Investment in Developing Countries by A. Chhibber,M. Dailami,N. Shafik Pdf

The aim of the research described in this volume is to examine the behavior of private domestic investment in a sample of seven developing economies: Chile, Colombia, Egypt, Indonesia, Morocco, Turkey, and Zimbabwe. The studies represent a first step toward understanding the investment process in developing countries and the scope for government policy to affect private capital formation. Such issues will become increasingly important in the future as more developing countries try to encourage private investment. Four key issues emerge in the analysis of the determinants of private investment and its role in adjustment programs in developing countries. The first is the impact of changes in the exchange rate; the second major concern is the existence of crowding out of private activity as a result of government borrowing in domestic financial markets through interest rates or quantity rationing. A third and related issue is whether government spending, particularly that on investment, "crowds in" or "crowds out" private capital formation. Fourth, the effects of uncertainty are important in determining the response of private agents to changes in the incentive structure.

Author : Mr.Tidiane Kinda,Jean-Louis Combes,Patrick Plane
Publisher : International Monetary Fund
Page : 35 pages
File Size : 53,9 Mb
Release : 2011-01-01
Category : Business & Economics
ISBN : 9781455211876

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Capital Flows, Exchange Rate Flexibility, and the Real Exchange Rate by Mr.Tidiane Kinda,Jean-Louis Combes,Patrick Plane Pdf

This paper analyzes the impact of capital inflows and exchange rate flexibility on the real exchange rate in developing countries based on panel cointegration techniques. The results show that public and private flows are associated with a real exchange rate appreciation. Among private flows, portfolio investment has the highest appreciation effect-almost seven times that of foreign direct investment or bank loans-and private transfers have the lowest effect. Using a de facto measure of exchange rate flexibility, we find that a more flexible exchange rate helps to dampen appreciation of the real exchange rate stemming from capital inflows.

Author : Steve Brito,Mr.Nicolas E Magud,Mr.Sebastian Sosa
Publisher : International Monetary Fund
Page : 21 pages
File Size : 42,6 Mb
Release : 2018-05-10
Category : Business & Economics
ISBN : 9781484354834

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Real Exchange Rates, Economic Complexity, and Investment by Steve Brito,Mr.Nicolas E Magud,Mr.Sebastian Sosa Pdf

We show that the response of firm-level investment to real exchange rate movements varies depending on the production structure of the economy. Firms in advanced economies and in emerging Asia increase investment when the domestic currency weakens, in line with the traditional Mundell-Fleming model. However, in other emerging market and developing economies, as well as some advanced economies with a low degree of structural economic complexity, corporate investment increases when the domestic currency strengthens. This result is consistent with Diaz Alejandro (1963)—in economies where capital goods are mostly imported, a stronger real exchange rate reduces investment costs for domestic firms.

Author : Bahar Erdal
Publisher : Routledge
Page : 150 pages
File Size : 49,8 Mb
Release : 2017-05-18
Category : Business & Economics
ISBN : 9781351801713

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The Effects of Real Exchange Rate Volatility on Sectoral Investment by Bahar Erdal Pdf

Originally published in 1997. This study investigates what the effects of real exchange rate volatility are on sectorial investment in the fixed and flexible exchange rate systems. It lays out the results of research into the effects of the levels and volatility of real exchange rates on investment in the manufacturing sectors of the countries in the European Monetary System as well as of the countries in the flexible exchange rate system, with data from between 1973 and 1993. Examining the differences between the two systems in the results this book also looks at exchange rate effects on interest rates at the time.

Author : Yaw Owusu Asante
Publisher : Unknown
Page : 64 pages
File Size : 54,6 Mb
Release : 2000
Category : Economic surveys
ISBN : STANFORD:36105110686875

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Determinants of Private Investment Behaviour by Yaw Owusu Asante Pdf

Author : William C. Gruben,David M. Gould,Carlos E. Zarazaga
Publisher : Springer Science & Business Media
Page : 274 pages
File Size : 52,8 Mb
Release : 1997-08-31
Category : Business & Economics
ISBN : 0792399080

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Exchange Rates, Capital Flows, and Monetary Policy in a Changing World Economy by William C. Gruben,David M. Gould,Carlos E. Zarazaga Pdf

The dramatic growth of international capital flow has provided unprecedented opportunities and risks in emerging markets. This book is the result of a conference exploring this phenomenon, sponsored by the Federal Reserve Bank of Dallas. The issues explored include direct versus portfolio investment; exchange rates and economic growth; and optimal exchange rate policy for stabilizing inflation in developing countries. It concludes with a panel discussion on central bank coordination in the midst of exchange rate instability.

Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 30 pages
File Size : 50,6 Mb
Release : 1990-04-01
Category : Business & Economics
ISBN : 9781451977028

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Private Investment in Developing Countries by International Monetary Fund Pdf

This paper analyzes the effects of several policy and other macro-economic variables on the ratio of private investment to GDP in developing countries. Using data for a sample of 23 developing countries over the period 1975-87, the econometric evidence indicates that the rate of private investment is positively related to the real growth rate of GDP, public sector investment, and to a lesser extent the level of per capita GDP, while it is negatively related to domestic inflation, the debt service ratio, the debt-to-GDP ratio, and high real interest rates. There is also some indication that all but the last of these variables had a greater impact before the onset of the debt crisis in 1982, while the debt-to-GDP ratio (a measure of a country’s debt overhang) has become more important since then.

Author : Ajay Chhibber,Mansoor Dailami
Publisher : World Bank Publications
Page : 48 pages
File Size : 41,8 Mb
Release : 1990
Category : Finance, Public
ISBN : 8210379456XXX

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Fiscal Policy and Private Investment in Developing Countries by Ajay Chhibber,Mansoor Dailami Pdf

The key to sustained recovery in developing countries is the revival of private investment. This revival requires a coordinated set of credible policies - fiscal, exchange rate, tax, and public expenditure restructuring. In several countries the debt overhang is also an obstacle to achieving that credibility.

Author : Guy P. Pfeffermann,Gregory Kisunko,Mariusz A. Sumlinski
Publisher : World Bank Publications
Page : 68 pages
File Size : 54,8 Mb
Release : 1999
Category : Business & Economics
ISBN : 0821344757

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Trends in Private Investment in Developing Countries by Guy P. Pfeffermann,Gregory Kisunko,Mariusz A. Sumlinski Pdf

This is the tenth annual edition of "Trends in Private Investment in Developing Countries." To mark this event, this report includes figures for each of the countries for which data are available as well as the first country-specific results of a worldwide survey on obstacles to doing business perceived by executives in 74 countries (including several industrial countries for comparison). The first part of this report documents trends in private and public fixed investment. The second part presents country-specific results of a 1996/97 worldwide survey of business executives. The discussion focus on obstacles to doing business and their relationship to levels of private investment. A few factors emerge as being of particular importance to private investment decisions:the real exchange rate, the rule of law, predictability of judiciary systems, and the extent to which financing is available to enterprises.

Author : Guy Pierre Pfeffermann,Gregory Kisunko,Mariusz A. Sumlinski
Publisher : World Bank Publications
Page : 64 pages
File Size : 42,6 Mb
Release : 1999-01-01
Category : Business & Economics
ISBN : 0821344757

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Trends in Private Investment in Developing Countries by Guy Pierre Pfeffermann,Gregory Kisunko,Mariusz A. Sumlinski Pdf

This is the tenth annual edition of "Trends in Private Investment in Developing Countries." To mark this event, this report includes figures for each of the countries for which data are available as well as the first country-specific results of a worldwide survey on obstacles to doing business perceived by executives in 74 countries (including several industrial countries for comparison). The first part of this report documents trends in private and public fixed investment. The second part presents country-specific results of a 1996/97 worldwide survey of business executives. The discussion focus on obstacles to doing business and their relationship to levels of private investment. A few factors emerge as being of particular importance to private investment decisions:the real exchange rate, the rule of law, predictability of judiciary systems, and the extent to which financing is available to enterprises.

Author : Luis Serven,Andrés Solimano
Publisher : World Bank Publications
Page : 47 pages
File Size : 53,6 Mb
Release : 1989
Category : Investments
ISBN : 8210379456XXX

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Private Investment and Macroeconomic Adjustment by Luis Serven,Andrés Solimano Pdf

Author : Peter J. Montiel,Jonathan David Ostry
Publisher : Unknown
Page : 54 pages
File Size : 40,6 Mb
Release : 1991
Category : Developing countries
ISBN : UCSD:31822006650832

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Macroeconomic Implications of Real Exchange Rate Targeting in Developing Countries by Peter J. Montiel,Jonathan David Ostry Pdf