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Luis Servén - Striving for growth after adjustment: the role of capital formation

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title Striving for Growth After Adjustment The Role of Capital Formation - photo 1

title:Striving for Growth After Adjustment : The Role of Capital Formation World Bank Regional and Sectoral Studies
author:Serven, Luis.
publisher:World Bank
isbn10 | asin:0821324845
print isbn13:9780821324844
ebook isbn13:9780585244235
language:English
subjectSaving and investment--Developing countries, Economic stabilization--Developing countries, Investments--Developing countries.
publication date:1993
lcc:HC59.72.S3S77 1993eb
ddc:338.9/009172/4
subject:Saving and investment--Developing countries, Economic stabilization--Developing countries, Investments--Developing countries.
Page iii
Striving for Growth after Adjustment
The Role of Capital Formation
Edited By
Luis Serven
and
Andres Solimano
The World Bank
Washington, D.C.
Page iv
1993 The International Bank for Reconstruction
and Development / The World Bank
1818 H Street, N.W., Washington, D.C. 20433
All rights reserved
Manufactured in the United States of America
First printing October 1993
The World Bank Regional and Sectoral Studies series provides an outlet for work that is relatively limited in its subject matter or geographic coverage but that contributes to the intellectual foundations of development operations and policy formulation.
The findings, interpretations, and conclusions expressed in this publication are those of the authors and should not be attributed in any manner to the World Bank, to its affiliated organizations, or to the members of its Board of Executive Directors or the countries they represent.
The material in this publication is copyrighted. Requests for permission to reproduce portions of it should be sent to the Office of the Publisher at the address shown in the copyright notice above. The World Bank encourages dissemination of its work and will normally give permission promptly and, when the reproduction is for noncommercial purposes, without asking a fee. Permission to copy portions for classroom use is granted through the Copyright Clearance Center, 27 Congress Street, Salem, Massachusetts 01970, U.S.A.
The complete backlist of publications from the World Bank is shown in the annual Index of Publications, which contains an alphabetical title list and indexes of subjects, authors, and countries and regions. The latest edition is available free of charge from Distribution Unit, Office of the Publisher, The World Bank, 1818 H Street, N.W., Washington, D.C. 20433, U.S.A., or from Publications, The World Bank, 66, avenue d'Ina, 75116 Paris, France.
Luis Servn and Andrs Solimano are economists in the Transition and Macro-Adjustment Division of the World Bank.
Cover design by Sam Ferro
Library of Congress Cataloging-in-Publication Data
Striving for growth after adjustment: the role of capital formation /
edited by Luis Servn and Andrs Solimano.
p. cm. (World Bank regional and sectoral studies)
ISBN 0-8213-2484-5
1. Saving and investmentDeveloping countries. 2. Economic
stabilizationDeveloping countries. 3. InvestmentsDeveloping
countries. I. Servn, Luis. II. Solimano, Andrs. III. Series.
HC59.72.S3S77 1994
338.9'009172'4dc20 93-23833
CIP
Page v
CONTENTS
Preface
vii
List of Contributors
ix
Part A
Investment Theory and Adjustment Policies
1. Introduction
Luis Servn and Andrs Solimano
3
2. Private Investment and Macroeconomic Adjustment: A Survey
Luis Servn and Andrs Solimano
11
3. Irreversibility, Uncertainty, and Investment
Robert S. Pindyck
31
4. On the Dynamics of Aggregate Investment
Ricardo J. Caballero
81
5. Empirical Investment Equations for Developing Countries
Martin Rama
107

Page vi
Part B
Adjustment and Investment Performance
6. Economic Adjustment and Investment Performance in Developing Countries: The Experience of the 1980s
Luis Servn and Andrs Solimano
147
7. Macroeconomic Environment and Capital Formation in Latin America
Eliana Cardoso
181
8. Investment and Macroeconomic Adjustment: The Case of East Asia
Felipe Larrain and Rodrigo Vergara
229
9. Policies for the Recovery of Investment: Panel Presentations
Rudiger Dornbusch, Robert S. Pindyck, Dani Rodrik, Andrs Solimano, and Luis Servn
275

Page vii
PREFACE
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 cures for the gap between macroeconomic adjustment and stabilization and the resumption of economic growth in developing countries, a gap that even today10 years after the debt crisis and the subsequent adjustment of the eightiesremains wide. This volume highlights the central role of capital formation (private and public) in the restoration of sustainable growth.
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