Impacts of Investments on the Structural Transformation of Countries

This title is printed to order. This book may have been self-published. If so, we cannot guarantee the quality of the content. In the main most books will have gone through the editing process however some may not. We therefore suggest that you be aware of this before ordering this book. If in doubt check either the author or publisher’s details as we are unable to accept any returns unless they are faulty. Please contact us if you have any questions.

The panel structure of our data allows us to estimate the model thus specified as both a finite lagged model and a dynamic model. The results refute the hypothesis that agricultural investment contributes to structural transformation; however, they confirm the positive role of industrial investment and services lagged one and two periods. They also highlight the positive impact of GDP, the policy regime, and the negative impact of inflation. The analysis highlighted the high sensitivity of structural transformation to investment in: (i) manufacturing industry, (ii) transport-warehousing and communications and (iii) insurance-real estate and business services. Exploring the implications of these results in terms of economic policy measures through a normative approach, a decentralised intervention in the form of public-private partnership appeared to be the best framework to influence individual investment decisions and to channel investment primarily to these branches.