Dynamic Nature Of Private Investment Function And Its Determinants In Developing Countries
Mohammad Zebib
(Assistant Manager for Corporate Planning, Dubai Ports Authority and Jebel Ali Free Zone, Dubai, United Arab Emirate)
Michael Muoghalu
(Associate Professor of Finance, Department of Economics, Finance and Banking, Pittsburg State University, Pittsburg, KS 66762)
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Abstract
This paper suggests that private investment expenditure is determined by the changes in domestic credit and net capital inflow to the private sector. Any increase in government investment increases private investment through the increase in the changes in private output (contributory effect) and decreases private investment through the decrease in the availability of the banking system's domestic credit and net inflow of capital to the private sector.
Citation
Zebib, M. and Muoghalu, M. (1997), "Dynamic Nature Of Private Investment Function And Its Determinants In Developing Countries", Studies in Economics and Finance, Vol. 18 No. 1, pp. 100-110. https://doi.org/10.1108/eb028737
Publisher
:MCB UP Ltd
Copyright © 1997, MCB UP Limited