Does Economic Resilience Enhance Private Investment? Evidence from Panel Data

A.K.M. Atiqur Rahman and Nabil Ahmed

The paper examines the relationship between economic resilience and private investment using panel data from 42 countries. An Index of resilience has been constructed that is comparable both across countries and over time. Both static and dynamic panel model of investments are estimated. The results show that economic resilience has strong impact on private investment. The relationship is robust to alternative estimation methods. Control variables such as growth of per capita income, public investment, FDI, per capita income are also found to be important in determining private investment.

DOI : https://doi.org/10.21102/jbpr.2018.07.131.03