Central Bank Independence and Private Investment in the Developing World |
| |
| Authors: | M. Pastor,Jr,& S. Maxfield |
| |
| Affiliation: | University of California-Santa Cruz, Santa Cruz, CA 95064, USA,;Harvard Institute for International Development, Washington, DC |
| |
| Abstract: | We argue that central bank independence (CBI) can raise private investment through signalling commitment to reform and suggest that such an effect might be larger in democracies where CBI can also limit populist access to economic policy-making. Random effects regressions on private investment behavior in a sample of 20 developing countries support these hypotheses. |
| |
| Keywords: | |
|
|
