Economics, Econometrics and Finance
7 years ago

Fiscal deficits hinder private investment in East Africa, study finds.

International Journal of Business Economics and Management
Effect of Budget Defict on Private Investment in East African Community for the Period 1981-2015: A Panel Data Analysis
Naftaly Mose, Irene Jepchumba Keino

Paper Summary

The study looked at how budget deficits affect private investment in East African countries from 1981 to 2015. They found that high budget deficits have a negative impact on private investment in the region. To improve private investment and economic growth, reducing debt and government spending is recommended.

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