We examine determinants of, and interactions between, capital inflows, financial development, and domestic investment … macroeconomic policy. Both private capital inflows and domestic credit exert a positive effect on investment; they also mediate most … of the investment impact of the global price of risk and domestic borrowing costs. Surprisingly, neither greater domestic …

Over the past two decades, the growth rate of outward foreign direct investment (FDI) from developing and transition …, it is important to assess how domestic investment responds to such outflows. This study empirically examines the effects … of outward FDI on domestic investment in developing countries. Using data from 121 developing and transition economies …

We introduce a new suite of macroeconomic models that extend and complement the Debt, Investment, and Growth (DIG …'s properties by analyzing the growth, debt, and distributional consequences of big-push public investment programs with different … mixes of investment in human capital and infrastructure. We show that investment in human capital is much more effective …

Over the past decade, China's growth model has become more reliant on investment and its footprint in global imports … has widened substantially. Several economies within China's supply chain are increasingly exposed to its investment …-led growth and face growing risks from a deceleration in investment in China. This note quantifies potential global spillovers …

Real estate investment accounts for a quarter of total fixed asset investment (FAI) in China. The real estate sector … estate investment in China ”though a low-probability event” would be sizable, with large spillovers to a number of China … and the rest of the G20 economies, we find that a 1-percent decline in China's real estate investment would shave about 0 …

We study the effects of permanent and temporary income shocks on precautionary saving and investment in a "store … investment, or a "volatility trap." Namely, big savers invest relatively little. In contrast, low volatility of permanent shocks … leads to low precautionary saving and high or low investment, depending on the volatility of temporary shocks. Empirical …

This paper analyzes the evolution of investment in China, its main features, and its key determinants. In recent years …, manufacturing, real estate, and infrastructure have been the main drivers of investment. Investment remains largely concentrated in … determinants of investment indicates that financial variables, such as interest rates, the exchange rate, and the depth of the …