This paper examines the dynamic causal relationship between financial development, external debt and investment in … investment in Lesotho, Namibia and Eswatini from 1980-2020 is country-dependent. For Eswatini, both investment and financial … Lesotho, where external debt is also found to Granger cause investment, also both in the short run and the long run. The study …

investment models must be attributable to movements in equity risk premia. In this Paper we emphasise that such movements in … equity risk premia should have implications not merely for investment today, but also for future investment over long …-horizon fluctuations in the growth of marginal Q, and therefore investment. We test this implication directly by performing long …

Conventional wisdom has it that increasing price or exchange rate uncertainty will depress investment. Using the Dixit … uncertainty leads to more investment. It depends first on the risk of being stuck with (ex-post) unwanted investments, then on the … increase or decrease investment; and also to identify which types of industries would gain, and which would suffer, from a move …

investment goods in developing countries. One implication of our findings is that increased aid flows to developing countries …

Theoretical models of investment under uncertainty predict that the sign and the strength of the investment … investment and the market power of the firm. This paper investigates the effects of uncertainty on the investment decisions of a …. Consistent with the predictions of the theory, there is considerable heterogeneity in the effect of uncertainty on investment: it …

: (i) investment falls precipitously as it should when it becomes optimal to default; (ii) economic policy deteriorates … interest rates. We find a systematic response of investment, particularly when property rights are weakly enforced, some … rates. Thus, while debt relief is likely to improve economic policy (and especially investment) in overhang countries, it is …