In this paper, we first introduce investment-specific technology (IST) shocks to an otherwise standard international real business cycle model and show that a thoughtful calibration of them along the lines of Raffo (2009) successfully addresses the ""quantity"", ""international comovement"",...

This paper summarizes the relevant considerations and presents decisions for the establishment of an Investment Account (IA). Executive Directors considered an analysis of the establishment and operations of an IA in September 2005. During the discussion in March 2006 of the medium-term outlook...

This paper analyzes the effects of several policy and other macro-economic variables on the ratio of private investment to GDP in developing countries. Using data for a sample of 23 developing countries over the period 1975-87, the econometric evidence indicates that the rate of private...

This paper assesses the link between public investment and economic growth in Burkina Faso. It also evaluates Burkina Faso's external competitiveness by using a comparison of REER to its equilibrium levels and a survey-based assessment of overall competitiveness. The report attempts to quantify...

Through the provision of both social and economic infrastructure, public investment can serve as an important catalyst for economic growth. A significant body of theoretical and empirical research underscores the positive relationship between investment in high-quality public infrastructure and...

Public investment supports the delivery of key public services, connects citizens and firms to economic opportunities, and can serve as an important catalyst for economic growth. After three decades of decline, public investment has begun to recover as a share of GDP in emerging markets (EMs)...

In some countries, corrupt politicians appear to choose investment projects based on the opportunity for bribes and kickbacks these projectspresent. This paper contends that such corruption increases the numberof capital projects undertaken and trends to enlarge their size andcomplexity. The...

This paper reports on findings from eight pilot country studies on public investment that were carried out during the second half of 2004. The pilot country studies covered a diverse group of countries. Specifically, they included countries in Latin America (Brazil, Chile, Colombia, and Peru),...

The challenge of achieving broad-based growth in Lesotho is discussed. Economic growth is inconsistent. Lesotho is highly dependent on trade with South Africa. The sources of growth in Lesotho using a social accounting matrix model and a growth-accounting framework are outlined. The main...

This Selected Issues paper on the Kingdom of Lesotho reviews the broad objectives and key institutional features of the Common Monetary Area (CMA) relating to currency arrangements. The CMA Agreement provides for the three small member countries to have access to South African capital and money...