The response of private investment to structural adjustment—a case study of Turkey
✍ Scribed by Öner Günçavdi; Michael Bleaney; Andrew McKay
- Publisher
- John Wiley and Sons
- Year
- 1999
- Tongue
- English
- Weight
- 162 KB
- Volume
- 11
- Category
- Article
- ISSN
- 0954-1748
No coin nor oath required. For personal study only.
✦ Synopsis
Much concern has been expressed about the apparently adverse response of private investment to structural adjustment and other economic reform programmes, even in countries where these reforms appear to have been fairly successful according to other criteria. This issue is examined for the case of Turkey, where private investment dipped signi®cantly following the launch of the economic reform programme. Particular attention is paid to the ®nancial sector reforms in that programme. While the high interest rates which were associated with ®nancial liberalization did discourage investment, this eect appears to have been temporary, and ®nancial liberalisation had the bene®cial long-term eect of relaxing credit constraints on investment, which had been an important feature of the pre-reform era.
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