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CEA 2006 - Encourager l'Investissement privé en Afrique


Economists have long recognized the importance of investment in wealth creation. The basic relationship is rooted in the ‘multiplier” and “accelerator” principles. As production increases, businessmen invest more to keep up with their orders. But this greater investment also has a multiplier effect and causes production to increase further, which requires a still higher rate of investment, leading to still higher output via its multiplier effect, and so on. The corollary is, of course, firm – stagnant or falling production does not induce investment.

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