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There is no shortage of books and studies that regard investment as an important catalyst for accelerated economic development. As a result, developing countries that are ambitious for economic prosperity are strongly encouraged to prioritize investment in their national development strategy. There is often little information on which policies and their magnitude of change that can be most effective in a particular context. Using the Malawian economy, this book provides a timely insight into what fiscal and monetary policies can achieve with respect to a least developed economy. A modified neoclassical model estimated by the linear Generalised Method of Moments and panel data is used to derive important findings on the impact of government consumption, public infrastructure, corporate tax, lending rates and corporate tax on private investment. The analysis provides useful insight into modern investment modeling, econometric estimation techniques, policy results and should be useful to policy makers, professionals and scholars in development related institutions across the world.

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Hannock Kumwenda, PhD: Studied Development Economics at the University of Malawi from undergraduate up to PhD level, with special emphasis on policies and investment. Independent researcher and consultant, having worked for 21 years as a professional economist in the Ministry of Economic Planning and Development in Malawi.

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