Tuesday, February 19, 2008

What I'm working on now

To Squeeze Or Not To Squeeze: The Political Economy of Local Investment Climate
N. McCulloch, A.A. Patunru, C. von Luebke, S.B. Wardhani, 2008

Here's the hypothesis:

The stylized fact that lies behind this research is that there are areas which have follow traditional prescriptions for improving their "investment climate" but which have still seen rather poor levels of investment whilst there are others which have implemented rather distortionary policies but have built strong relationships between the government and the private sector which have been successful in stimulating investment and growth.  Thus we have a hypothesis that certain types of relationship between the private and public sectors are an important driver of investment, perhaps even more important than the specific standard policy prescriptions in the literature

This is part of this collaboration.

Will update you later.


Anonymous said...

Well, investment is determined by cost and return. Investment climate is speaking at stage of cost of investment while return to investment is another story. Then between the two is political economy as well?zohq

Aco said...

I think you're right, zohq. Thanks.