Determinants of Corporate Investment in China: Evidence from Cross-Country Firm Level Data

WPIEA2012080 Image
Price:  $18.00

Author/Editor: Nan Geng, Papa N'Diaye
Release Date: © March, 2012
ISBN : 978-1-47550-232-9
Stock #: WPIEA2012080
English
Stock Status: On back-order

Languages and formats available

EnglishFrenchSpanishArabicRussianChinesePortuguese
PaperbackYes
PDFYes

Description

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 coastal areas, but there has been a shift to greater investments inland in recent years. The empirical analysis of the determinants of investment indicates that financial variables, such as interest rates, the exchange rate, and the depth of the domestic capital market are important determinants of corporate investment. The results suggest in particular that financial sector reform, including that which deregulates and raises real interest rates as well as appreciates the real effective exchange rate, would lower investment and help rebalance growth away from exports and investment toward private consumption.

Taxonomy

Capital markets , Economic development , Financial institutions and markets , Investment




More publications in this series: Working Papers


More publications by: Nan Geng ; Papa N'Diaye