返回Google圖書搜尋

Financial Liberalisation and Determinants of Investment

其他書名	An Enquiry into Indian Private Corporate Manufacturing Sector
出版	SSRN, 2005
URL	http://books.google.com.hk/books?id=GnzLzgEACAAJ&hl=&source=gbs_api

註釋The main objective of a shift from a controlled regime to a more liberal regime in the financial sector was to promote investment in the economy. The studies on the determinants of private investment in developing countries, against the traditional theories of investment, focussed on the role of government policy and tried to derive an explicit relationship between the principal policy instruments and private investment. Recent theoretical and empirical studies have produced results consistent with the idea that the economic policy of a nation is crucial in determining the domestic investment behaviour. These studies emphasised the role of financial sector development on private investment, and provide a framework for understanding the effects of changes in economic policies on private investment. In the present paper we study the determinants of manufacturing investment in the light of financial sector liberalization introduced in 1991. The results indicate that traditional determinants like output, profit etc still play a major role in determining investment than financial sector liberalization. Though the domestic financial liberalisation produced an environment conducive for investment, it could not succeeded in creating a sustained increase in capital formation in the post reform period. In other words, firms consider the demand factor, internal liquidity position and past investment decisions etc as the major indicators for future investment.