This paper analyzes the joint effect of EPL and financial market imperfections on investment, capital … stronger in firms with lower levels of internal resources. We find that, on average, EPL reduces investment per worker, capital …

role of rising rates of investment. Because labor reallocation across sectors, TFP growth at the sector level and … investment are all inter-related, simple growth decompositions that are often used in the literature are not appropriate for … continues to absorb more than half of all fixed investment. If capital had been allocated efficiently, China could have achieved …

firms to cut investment, employment, and borrowing. We conclude that financial market fluctuations affect even private firms …