Explaining Recent Investment Weakness : Causes and Implications

Islamaj, Ergys ; Kose, M. Ayhan ; Ohnsorge, Franziska ; Ye, Lei Sandy

Taylor and Francis

关键词: DEVELOPING ECONOMIES;    EMERGING MARKET ECONOMIES;    INVESTMENT CLIMATE;    STRUCTURAL REFORM;    TERMS OF TRADE;   

DOI  :  10.1080/1540496X.2018.1530105
RP-ID  :  136130

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This article investigates the drivers of investment growth in emerging market and developing economies with a focus on the most recent slowdown over the 2010–2015 period. Using panel regression techniques, we find that the recent investment slowdown in emerging market and developing economies is associated with a range of obstacles: weak economic activity, negative terms-of-trade shocks, declining foreign direct investment inflows, elevated private debt burdens, and heightened political risk. This stands in contrast with advanced economies, where weak economic activity is the most important factor. We briefly discuss policy implications of our findings.