Transcription of PUBLIC-PRIVATE SECTOR RELATIONSHIPS IN DEVELOPING …
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JOURNAL OF ECONOMIC DEVELOPMENT 1 Volume 28, Number 2, December 2003 PUBLIC-PRIVATE SECTOR RELATIONSHIPS IN DEVELOPING COUNTRIES MARTIN J. STAAB Georgetown University This paper refutes the conventional wisdom, bolstered in the wake of the Asian financial crisis that governments should not become too friendly with the private SECTOR but, instead, should remain neutral and at arms-length distance. The empirical findings presented here indicate that countries in which governments have forged close and cooperative working RELATIONSHIPS with the private SECTOR have had much greater economic success. Furthermore, countries with more business-friendly PUBLIC-PRIVATE SECTOR RELATIONSHIPS tend to exhibit greater positive responsiveness to pro-growth policy reforms.
4 MARTIN J. STAAB 3.1.3. Ensuring Business Security Another measure of public-private sector friendliness is the extent to which governments ensure the security of doing business.
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