I am working on FDI and Economic growth: The role of the private sector. What are the indicators can I use to measure the private sector?
Dear Hagan
I suggest you consider some features relating to the credit market (which may enhance the spillover effects of FDI), the private investment (there may be crowding out effects of FDI on private investment), the competition between private sector and FDI.
I hope that helpful
Best
Canh
Many thanks Canh. Please can you mention some of the features relating to the credit market?
Dear Hagan
As you know, the credit market (especially in developing contries is very important to boost the capital flow from savers to borrowers) has the main objective in boost capital flows. So you can consider to the credit to GDP, the non - performance loans (which indicate the risk), the competion index (such as HHI, CR5), the ratio of capital to total asset, the percentage of firms that use loans from bank...ect
I hope that helps you
Canh
Important indicators to consider are private sector investment (gross fixed private capital formation (% of GDP), investment in infrastructure with private participation, private foreign direct investment, net (% of GDP)), domestic credit to the private sector (% of GDP), and individuals using the Internet (%).
you can utliliser the following indicators to measure the role of private sector in economic growth
1- the private productive investment in secuer
2- the private sector in the creation of added value
3- the share of private sector employment for young graduates
4- the private sector share in exports
5- the private secuer in research and development
6. the number of private companies listed on the stock exchange
The profit margin, as a financial measure, is also the most commonly used performance measure. Customer satisfaction is the most commonly used non‐financial measure of performance evaluation.
real GDP, interest rate, inflation rate, tax rate, exchange rate, population growth rate, unemployment rate, trade openness, educational enrollment, broad money supply, and external debt are the most commonly used to measure the private sector.