Weakness in Investment Growth : Causes, Implications and Policy Responses

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

World Bank, Washington, DC

关键词: investment climate;    emerging markets;    developing economies;    investment slowdown;    infrastructure investment;   

DOI  :  10.1596/1813-9450-7990
RP-ID  :  WPS7990

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Investment growth in emerging market anddeveloping economies has slowed sharply since 2010. Thispaper presents a comprehensive analysis of the causes andimplications of this slowdown and presents a menu of policyresponses to improve investment growth. It reports four mainresults. First, the slowdown has been broad-based and mostpronounced in the largest emerging markets and in commodityexporters. Second, it reflects a range of obstacles: weakactivity, negative terms-of-trade shocks, declining foreigndirect investment inflows, elevated private debt burdens,heightened political risk, and adverse spillovers from majoreconomies. Third, by slowing capital accumulation andtechnological progress embedded in investment, weakpost-crisis investment growth has contributed to sluggishgrowth of potential output in recent years. Finally,although specific policy priorities depend on countrycircumstances, policymakers can boost investment bothdirectly, through public investment, and indirectly, byencouraging private investment, including foreign directinvestment, and by undertaking measures to improve overallgrowth prospects and the business climate.