Investment and Institutional Uncertainty: A Comparative Study of Different Uncertainty Measures (Technical Paper (International Finance Corporation), No. 4.)

This technical paper considers how various dimensions of institutional uncertainty affect the developing countries' investment rates. The paper is the first to present a comparative analysis of uncertainty variables in sixty countries by means of a standardized data set, and to analyze the effects on investment over a uniform time period. Private and total investment tend to be highly correlated. Therefore, the findings shed light on private investors' decisions in the face of uncertainty.