Does the Business Environment Affect Corporate Investment in India? / Kiichi Tokuoka.

Format:

Book

Government document

Author/Creator:

Tokuoka, Kiichi.

Series:

IMF Working Papers; Working Paper ; No. 2012/070

IMF Working Papers

Language:

English

Subjects (All):

Corporations--India--Finance.

Corporations.

Investments--India.

Investments.

Physical Description:

1 online resource (24 p.)

Edition:

1st ed.

Place of Publication:

Washington, D.C. : International Monetary Fund, 2012.

Language Note:

English

Summary:

Since the global financial crisis, corporate investment has been weak in India. Sluggish corporate investment would not only moderate growth from the demand side but also constrain growth from the supply side over time. Against this background, this paper analyzes the reasons for the slowdown and discusses how India can boost corporate investment, using both macro and firm-level micro data. Analysis of macro data indicates that macroeconomic factors can largely explain corporate investment but that they do not appear to account fully for recent weak performance, suggesting a key role of the business environment in reviving corporate investment. Analysis of micro panel data suggests that improving the business environment by reducing costs of doing business, improving financial access, and developing infrastructure, could stimulate corporate investment.

Contents:

Cover; Contents; I. Introduction; Figures; 1. Investment in India; II. Analysis of Macroeconomic Data; Tables; 1. Impact of Macroeconomic Variables on Corporate Investment; III. Analysis of Firm-Level Micro Panel Data; 2. Estimation of Investment Function; 3. Estimation of Investment Function Using Subsamples; 2. Determinants of Corporate Investment; 3. Business Environment Indices; 4. Variability of Business Environment within India; 4. Regression of Profitability; Box; 1. Studies Utilizing Variability within India; IV. Policy Issues and Conclusions

5. Estimated Aggregate Impact of Reducing Costs of Doing BusinessReferences; Appendices; A. Regression Results Using Alternative Data Set; B. Description of Semi-aggregate Data

Notes:

Description based upon print version of record.

Description based on print version record.

ISBN:

9781463950859

1463950853

9781463950262

1463950268

OCLC:

779529754