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The Role of the State in Promoting Regional Integration and Private Sector Development

Chapter
Part of the Advances in African Economic, Social and Political Development book series (AAESPD)

Abstract

The private sector remains an essential component of an economy’s development process, with positive impact on development challenges such as job creation and inclusive growth. This paper investigates the determinants of private investment in a panel of 14 West African countries from 1985 to 2011. Using system GMM regression techniques, the empirical findings support the need for an educated workforce as well as the complementary role of foreign capital investment as key determinants of private investment. Besides the necessity for a stable macroeconomic environment, the results underscore the need to boost the levels of public investment in order to address infrastructural deficits which bind the growth of entrepreneurial activities in the region.

Keywords

Private investment System GMM West Africa 

Notes

Acknowledgments

The author acknowledges comments from conference discussants and participants as well as a generous financial assistance provided by the UNECA.

Disclaimer

The usual disclaimer applies.

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Copyright information

© Springer International Publishing Switzerland 2014

Authors and Affiliations

  1. 1.Forecasting Section of the Macroeconomic Policy, Division at the United NationsEconomic Commission for Africa (UNECA)Addis AbabaEthiopia

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