Does Economic Resilience Enhance Private Investment? Evidence from Panel Data

Does Economic Resilience Enhance Private Investment? Evidence from Panel Data

Author: zant worldpress

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.

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