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Title: Investment in southern Africa : interaction of the private and public sectors
Author: Munthali, Thomas Beston Chataghalala
ISNI:       0000 0001 3432 1716
Awarding Body: University of Leeds
Current Institution: University of Leeds
Date of Award: 2008
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While the debate on the crowding-in-out effects of public investment on private investment largely seems to point towards a crowding-in effect in developing economies and the opposite in advanced economies, considerable evidence exists on inconclusiveness of such findings across country and regions. This research study aimed at investigating the possible crowding-in effects of disaggregated public investment, human capital, and corporate governance on private investment on 10 developing economies of one of the world's most underdeveloped regions, Southern Africa. Two investment models of neoclassical and flexible accelerator were modified to empirically capture the structural and institutional characteristics of the region. Further, against the background of capital availability as a binding constraint in developing economies, a survey was conducted on one of the countries in the panel for an in-depth analysis of corporate governance's link to fixed private investment in these least developed economies. The study rejects the hypothesis of 'the lesser developed economy, the higher the crowding-in effect' but instead points to a strong contemporaneous crowding-out effect of public investment in this least developed region. However, the models find that financial and external factors relating to macroeconomic uncertainties are important over institutional factors in conditioning private investment levels in the region. On the other hand, while the results on the components of FDI and domestic private investment are largely similar, it is macroeconomic volatility, particularly that of exchange rates and the size of government, that have the most impact on FDI both in the short and long-term. Human capital as measured by literacy rates is found to have no contemporaneous or long-term effects on all private investment components but education expenditure does except on FDI. Corporate governance, however, has insignificant effects in the region generally, both in the short and long-term.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available