investment growth

With aid assistance stagnating, authorities are turning to non-concessional loans, which can bridge financing gaps but can also threaten macroeconomic stability and create heavy repayment burdens. To assess these risks, the World Bank and the IMF together created the Debt Sustainability Framework (DSF), an instrument for guiding LIC’s borrowing decisions and reducing the chances of excessive debt accumulation. Although the framework is widely used, it has been criticized for a number of reasons. The Bank and the IMF have responded to some of these criticisms, for example, In an article about investment growth, Money magazine reported that drug stocks show powerful long-term trends and offer investors unparalleled potential for strong and steady gains. The fed. Health Care Financing Administration supports this conclusion through its forecast that annual prescription drug.To correct for these shortcomings, Buffie et al. develop an internally consistent model with productive sectors that use public capital as an input, different borrowing schemes (external concessional, external commercial, and domestic) and various fiscal rules that react to debt paths.The authors conclude that an increase in infrastructure investment can produce striking benefits for the real economy in the long run because of output expansion and revenue gains. They note, however, that even highly productive investments may require long-run tax increases to finance recurrent costs of sustaining new public capital, because much of the benefit goes to the private sector and tax rates are low. Even these positive results are contingent upon the country’s structural conditions. Public investment inefficiencies and absorptive capacity constraints for example, can imply that the increases in private capital and GDP that result from increased public investment may be disappointing. a rachidia, Morocco here