Determinants of Private Investment: A Systematic Review

Muhdin Muhammedhussen Batu

doi:doi:10.11648/j.ijefm.20160402.13

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Determinants of Private Investment: A Systematic Review

Muhdin Muhammedhussen Batu

Published in International Journal of Economics, Finance and Management Sciences (Volume 4, Issue 2)

Received: 9 January 2016 Accepted: 19 January 2016 Published: 4 March 2016

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Abstract

Investment is considered as a crucial element of economic growth and post 2015 development agendas. The main aim of this study is to assess the determinants of private investment. For this purpose, concentrated and careful literature review was done on 11 papers conducted in nine African countries. Eight variables were considered for analysis. The result shows that output/national income, public investment and exchange rate are the critical variables affecting the performance of private investment. The others variables: interest rate, credit, inflation rate, international trade, and money supply are also slightly important in explaining the performance of private investment. The study finally recommends that countries should seriously work in creating enabling environment for private investment.

Published in	International Journal of Economics, Finance and Management Sciences (Volume 4, Issue 2)
DOI	10.11648/j.ijefm.20160402.13
Page(s)	52-56
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2016. Published by Science Publishing Group

Keywords

Determinants, Private Investment, Economic Growth

References

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[2]	Agu, O. C. (2015). Determinants of Private Investment in Nigeria an Econometric Analysis. International Journal of Economics, Commerce and Management United Kingdom Vol. III, Issue 4.
[3]	Augustine, K. (2014). Determinants of Private Sector Investment in Ghana, 1970-2011. A Thesis Submitted to the Department of Economics, Kwame Nkrumah University of Science and Technology, in partial fulfillment of the requirements for the degree of Master of Philosophy in Economics Faculty of Social Sciences College of Art and Social Sciences.
[4]	Assa, M and Abdi, E. K. (2012). Selected Macroeconomic Variables Affecting Private Investment in Malawi. MPRA Paper No. 40698, posted 16. August 2012 12: 28 UTC Online at https://mpra.ub.uni-muenchen.de/40698/
[5]	Hailu, D. B. and Debele, F. (2015). The Effect of Monetary Policy on the Private Sector Investment in Ethiopia: ARDL Co-Integration Approach. Economics. Vol. 4, No. 2, 2015, pp. 22-33. doi: 10.11648/j.eco.20150402.12.
[6]	Hashmi, M. H., Akram, W. and Hashmi, A. A. (2012). Role of Investment in the Course of Economic Growth in Pakistan. International Journal of Academic Research in Economics and Management Sciences September 2012, Vol. 1, No. 5 ISSN: 2226-3624.
[7]	Jalloh, M. (2002). An Analysis of the Macroeconomic Determinants of Private Investment in Sierra Leone. A Thesis Presented to the School of Graduate Studies Addis Ababa University In partial fulfillment of the requirement for the award of the degree of Master of Science in Economics (Economic Policy Analysis).
[8]	Kaputo, C. C. (2011). Macroeconomic Policy and Domestic Private Investment: The Case of Zambia, 1980-2008. A Dissertation Submitted to the University of Zambia in Partial Fulfillment of the Requirements of the Degree of Master of Arts in Economics, University of Zambia.
[9]	Mbaye, E. Z. (2014). Determinants of Domestic Private Investments in Kenya. A Research Project Submitted to the School of Economics, University of Nairobi, in Partial Fulfilment of the Requirementsf The Degree of Master of Arts In Economics.
[10]	Molapo, S. and Damane, M. (2015). Determinants of Private Investment in Lesotho, 1982-2013. European Scientific Journal Volume 11, No 34, ISSN 1857-7881.
[11]	Mustefa, S. (2014). Private Investment and Economic growth Evidence from Ethiopia. A thesis Submitted in Partial Fulfillment of the requirements for Degree of Master of Science in Economics (Specialization in policy Analysis), Mekele University, Ethiopia.
[12]	Naa-Idar, F., Ayentimi, D. T., and Frimpong, J. M. (2012). Time Series Analysis of Determinants of Private Investment in Ghana (1960-2010). Journal of Economics and Sustainable Development www.iiste.org ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) Vol. 3, No. 13, 2012.
[13]	Ouattara, B. (2004). Modelling the Long Run Determinants of Private Investment in Senegal. CREDIT Research Paper No. 04/05.
[14]	Sackey, H. A. (2007). Private Investment for Structural Transformation and Growth in Africa: Where do Small and Medium-Sized Enterprises Stand? African Economic Conference 2007'Opportunities and Challenges of Development for Africa in the Global Arena 15-17 November 2007, Addis Ababa, Ethiopia.
[15]	UN (2014a). The Economic Development in Africa Report 2014: Catalyzing Investment for Transformative Growth in Africa.
[16]	UN (2014b). UN World Investment Report 2014: Investing in the SDGs: An Action Plan.
[17]	White, S. (2005). Enhancing private investment for development: Policy guidance for development agencies.

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APA Style

Muhdin Muhammedhussen Batu. (2016). Determinants of Private Investment: A Systematic Review. International Journal of Economics, Finance and Management Sciences, 4(2), 52-56. https://doi.org/10.11648/j.ijefm.20160402.13

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Muhdin Muhammedhussen Batu. Determinants of Private Investment: A Systematic Review. Int. J. Econ. Finance Manag. Sci. 2016, 4(2), 52-56. doi: 10.11648/j.ijefm.20160402.13

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AMA Style

Muhdin Muhammedhussen Batu. Determinants of Private Investment: A Systematic Review. Int J Econ Finance Manag Sci. 2016;4(2):52-56. doi: 10.11648/j.ijefm.20160402.13

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@article{10.11648/j.ijefm.20160402.13,
  author = {Muhdin Muhammedhussen Batu},
  title = {Determinants of Private Investment: A Systematic Review},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {4},
  number = {2},
  pages = {52-56},
  doi = {10.11648/j.ijefm.20160402.13},
  url = {https://doi.org/10.11648/j.ijefm.20160402.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20160402.13},
  abstract = {Investment is considered as a crucial element of economic growth and post 2015 development agendas. The main aim of this study is to assess the determinants of private investment. For this purpose, concentrated and careful literature review was done on 11 papers conducted in nine African countries. Eight variables were considered for analysis. The result shows that output/national income, public investment and exchange rate are the critical variables affecting the performance of private investment. The others variables: interest rate, credit, inflation rate, international trade, and money supply are also slightly important in explaining the performance of private investment. The study finally recommends that countries should seriously work in creating enabling environment for private investment.},
 year = {2016}
}

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TY  - JOUR
T1  - Determinants of Private Investment: A Systematic Review
AU  - Muhdin Muhammedhussen Batu
Y1  - 2016/03/04
PY  - 2016
N1  - https://doi.org/10.11648/j.ijefm.20160402.13
DO  - 10.11648/j.ijefm.20160402.13
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 52
EP  - 56
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20160402.13
AB  - Investment is considered as a crucial element of economic growth and post 2015 development agendas. The main aim of this study is to assess the determinants of private investment. For this purpose, concentrated and careful literature review was done on 11 papers conducted in nine African countries. Eight variables were considered for analysis. The result shows that output/national income, public investment and exchange rate are the critical variables affecting the performance of private investment. The others variables: interest rate, credit, inflation rate, international trade, and money supply are also slightly important in explaining the performance of private investment. The study finally recommends that countries should seriously work in creating enabling environment for private investment.
VL  - 4
IS  - 2
ER  -

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Author Information

Muhdin Muhammedhussen Batu

Department of Economics, Jimma University, Jimma, Ethiopia

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APA Style

Muhdin Muhammedhussen Batu. (2016). Determinants of Private Investment: A Systematic Review. International Journal of Economics, Finance and Management Sciences, 4(2), 52-56. https://doi.org/10.11648/j.ijefm.20160402.13

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ACS Style

Muhdin Muhammedhussen Batu. Determinants of Private Investment: A Systematic Review. Int. J. Econ. Finance Manag. Sci. 2016, 4(2), 52-56. doi: 10.11648/j.ijefm.20160402.13

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AMA Style

Muhdin Muhammedhussen Batu. Determinants of Private Investment: A Systematic Review. Int J Econ Finance Manag Sci. 2016;4(2):52-56. doi: 10.11648/j.ijefm.20160402.13

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@article{10.11648/j.ijefm.20160402.13,
  author = {Muhdin Muhammedhussen Batu},
  title = {Determinants of Private Investment: A Systematic Review},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {4},
  number = {2},
  pages = {52-56},
  doi = {10.11648/j.ijefm.20160402.13},
  url = {https://doi.org/10.11648/j.ijefm.20160402.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20160402.13},
  abstract = {Investment is considered as a crucial element of economic growth and post 2015 development agendas. The main aim of this study is to assess the determinants of private investment. For this purpose, concentrated and careful literature review was done on 11 papers conducted in nine African countries. Eight variables were considered for analysis. The result shows that output/national income, public investment and exchange rate are the critical variables affecting the performance of private investment. The others variables: interest rate, credit, inflation rate, international trade, and money supply are also slightly important in explaining the performance of private investment. The study finally recommends that countries should seriously work in creating enabling environment for private investment.},
 year = {2016}
}

Copy | Download

TY  - JOUR
T1  - Determinants of Private Investment: A Systematic Review
AU  - Muhdin Muhammedhussen Batu
Y1  - 2016/03/04
PY  - 2016
N1  - https://doi.org/10.11648/j.ijefm.20160402.13
DO  - 10.11648/j.ijefm.20160402.13
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 52
EP  - 56
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20160402.13
AB  - Investment is considered as a crucial element of economic growth and post 2015 development agendas. The main aim of this study is to assess the determinants of private investment. For this purpose, concentrated and careful literature review was done on 11 papers conducted in nine African countries. Eight variables were considered for analysis. The result shows that output/national income, public investment and exchange rate are the critical variables affecting the performance of private investment. The others variables: interest rate, credit, inflation rate, international trade, and money supply are also slightly important in explaining the performance of private investment. The study finally recommends that countries should seriously work in creating enabling environment for private investment.
VL  - 4
IS  - 2
ER  -

Copy | Download