Working Papers

Low Investment is Not the Constraint on African Development - Working Paper 13

Shantayanan Devarajan, William R. Easterly, and Howard Pack
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While many analysts decry the lack of sufficient investment in Africa, we find no evidence that private and public investment are productive, either in Africa as a whole (unless Botswana is included in the sample), or in the manufacturing sector in Tanzania. In this restricted sense, inadequate investment is not the major obstacle to African economic development.