Can Government Demand Stimulate Private Investment? Evidence from U.S. Federal Procurement
Can Government Demand Stimulate Private Investment? Evidence from U.S. Federal Procurement

Author: Shafik Hebous

Publisher: International Monetary Fund

Published: 2016-03-10

Total Pages: 33

ISBN-13: 1513578723

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We study the effects of federal purchases on firms’ investment using a novel panel dataset that combines federal procurement contracts in the United States with key financial firm-level information. We find that 1 dollar of federal spending increases firms’ capital investment by 7 to 11 cents. The average effect masks heterogeneity: Effects are stronger for firms that face financing constraints and they are close to 0 for unconstrained firms. In line with the financial accelerator model, our findings indicate that the effect of government purchases works through easing firms’ access to external borrowing. Furthermore, industry-level analysis suggests that that the increase in investment at the firm level translates into an industry-wide effect without crowding-out capital investment of other firms in the same industry.

Gross Private Capital Flows to Emerging Markets
Gross Private Capital Flows to Emerging Markets

Author: Erlend Nier

Publisher: International Monetary Fund

Published: 2014-10-27

Total Pages: 35

ISBN-13: 1498352928

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This paper assesses empirically the key drivers of private capital flows to a large sample of emerging market economies in the last decade. It analyzes the effect of the global financial cycle, measured by the VIX, on capital flows and investigates the role of fundamentals and country characteristics in mitigating or amplifying its effect. Using interaction models, we find the effect of the VIX to be non-linear. For low levels of the VIX, capital flows are driven by fundamental factors. During periods of stress, the VIX becomes the dominant driver of capital flows while other determinants, with the exception of interest rate differentials, lose statistical significance. Our results also suggest that the effect of global financial conditions on gross private capital flows increases with the host country’s level of financial sector development. Finally, our results imply that countries cannot fully insulate themselves from global financial shocks, unless creating a fragmented global financial system.

Successful Transitions from Public to Private-Sector Led Growth: Lessons for Benin
Successful Transitions from Public to Private-Sector Led Growth: Lessons for Benin

Author: Aissatou Diallo

Publisher: International Monetary Fund

Published: 2021-12-03

Total Pages: 28

ISBN-13: 1589068548

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Many Sub-Saharan African (SSA) countries, like Benin, have scaled up public investment during the last decade. Such a strategy contributed to the improvement of infrastructure, but also to a build-up of debt vulnerabilities. Looking forward, the planned fiscal consolidation will result in some restraint of public spending, and, in particular, public investment. In this context, maintaining or even raising the region’s economic growth will require an offset by the private sector. The analysis draws lessons from countries that have successfully transitioned from public investment to private investment-led growth using a global sample starting in the mid-1980s. These lessons highlight policies that have been crucial in fostering a rebound of private investment in the wake of a contraction of public investment. The analytical framework proposed by Hausman, Rodrik and Velasco (2005) is used to identify and classify such policies. Finally, the paper analyses how the identified policies could help Benin achieving a smooth transition from public to private sector-led growth.

Negative Interest Rates
Negative Interest Rates

Author: Luís Brandão Marques

Publisher: International Monetary Fund

Published: 2021-03-03

Total Pages: 84

ISBN-13: 1513570080

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This paper focuses on negative interest rate policies and covers a broad range of its effects, with a detailed discussion of findings in the academic literature and of broader country experiences.

Doing Business in 2004
Doing Business in 2004

Author: Simeon Djankov

Publisher: World Bank Publications

Published: 2004

Total Pages: 222

ISBN-13: 9780821353417

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A co-publication of the World Bank, International Finance Corporation and Oxford University Press

Proceedings of the 2022 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022)
Proceedings of the 2022 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022)

Author: Yushi Jiang

Publisher: Springer Nature

Published: 2023-05-11

Total Pages: 1906

ISBN-13: 9464630361

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This is an open access book. With the support of universities and the research of AEIC Academic Exchange Center, The 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022) will be held in Dali from June 24th to 26th. Compared with previous conferences, it will discuss more in-depth economic independent innovation, open cooperation and innovative business culture under the background of the new development stage, new situation and new journey era. There will be a broad exchange environment. Well-known experts, scholars or entrepreneurs in the field will be invited to make keynote reports. Contributing authors are also very welcome to actively participate in the conference and build an academic exchange ceremony.

Global Waves of Debt
Global Waves of Debt

Author: M. Ayhan Kose

Publisher: World Bank Publications

Published: 2021-03-03

Total Pages: 403

ISBN-13: 1464815453

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The global economy has experienced four waves of rapid debt accumulation over the past 50 years. The first three debt waves ended with financial crises in many emerging market and developing economies. During the current wave, which started in 2010, the increase in debt in these economies has already been larger, faster, and broader-based than in the previous three waves. Current low interest rates mitigate some of the risks associated with high debt. However, emerging market and developing economies are also confronted by weak growth prospects, mounting vulnerabilities, and elevated global risks. A menu of policy options is available to reduce the likelihood that the current debt wave will end in crisis and, if crises do take place, will alleviate their impact.