Empirical results show that governance plays a significant role in private investment decisions. This result is particularly true in the case of "administrative quality" in the form of control of corruption, bureaucratic quality, investment-friendly profile of administration, and law and order, as well as for "political stability." Evidence in favor of "public accountability" seems, however, less robust. The estimations also stress that structural reforms-such as financial development and trade openness-and human development affect private investment decisions directly, and/or through their positive impact on governance.
From the new working paper, Governance and Private Investment in the Middle East and North Africa. Also see PGP on poverty reduction in MENA.
Update: See the upcoming workshop "Between Society and the Market: Novel Approaches to the Business History of the Middle East."
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