This book presents the results of about three years of work finished in early 1992 in the area of private investment … and macroeconomic adjustment. Its purpose is to explore the macroeconomic determinants of investment and the causes and …

While expanding public investment can help filling infrastructure bottlenecks, scaling up too much and too fast often … public investment in a large sample of road construction projects in developing countries. Consistent with the presence of … absorptive capacity constraints, our results show a non-linear U-shaped relationship between public investment and project costs …