Tuesday, March 8, 2011

How to ensure stable growth in post-crisis Asia?

By raising consumption and investment or reorienting investment from tradable to nontradable sectors. These changes in investment could be facilitated by financial reforms that enhance domestically oriented firm’s access to credit, stronger incentives for corporate restructuring, policies to bolster the business climate and reduce uncertainty, and by improvements in infrastructure that raise the returns to private investment.

More on this on a paper by Nabar and Sayed 2011.