Public Policies and Private Savings and Investment in Sub-Saharan Africa

Public Policies and Private Savings and Investment in Sub-Saharan Africa PDF Author: Mr.Dhaneshwar Ghura
Publisher: International Monetary Fund
ISBN: 1451922523
Category : Business & Economics
Languages : en
Pages : 48

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Book Description
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.