and investment high. It finds that the low cost of capital has been quantitatively an important factor. Theory predicts … rebalance growth towards relying more on consumption and less on exports and investment, banking sector reforms and financial …

This Working Paper assesses the impact on investment of a reduction in corporate taxes and the impact on employment … (1967), we estimate an investment function, which depends on the user cost of capital, one of whose determinants is the … short and long-term effects on investment in machinery and equipment. While the user cost of capital declines 0.9 percent …

A surprisingly large number of countries have been able to finance a significant fraction of domestic investment using … foreign finance for extended periods. While many of these episodes are in low-income countries where official finance is more … important than private finance, this paper also identifies a number of episodes where a substantial fraction of domestic …