1.

Record Nr.

UNINA9910827916203321

Autore

Tokuoka Kiichi

Titolo

Does the business environment affect corporate investment in India? / / prepared by Kiichi Tokuoka

Pubbl/distr/stampa

Washington, D.C., : International Monetary Fund, 2012

ISBN

1-4639-5085-3

1-4639-5026-8

Edizione

[1st ed.]

Descrizione fisica

1 online resource (24 p.)

Collana

IMF working paper ; ; WP/12/70

Disciplina

332.152

Soggetti

Corporations - India - Finance

Investments - India

Lingua di pubblicazione

Inglese

Formato

Materiale a stampa

Livello bibliografico

Monografia

Note generali

Description based upon print version of record.

Nota di contenuto

Cover; Contents; I. Introduction; Figures; 1. Investment in India; II. Analysis of Macroeconomic Data; Tables; 1. Impact of Macroeconomic Variables on Corporate Investment; III. Analysis of Firm-Level Micro Panel Data; 2. Estimation of Investment Function; 3. Estimation of Investment Function Using Subsamples; 2. Determinants of Corporate Investment; 3. Business Environment Indices; 4. Variability of Business Environment within India; 4. Regression of Profitability; Box; 1. Studies Utilizing Variability within India; IV. Policy Issues and Conclusions

5. Estimated Aggregate Impact of Reducing Costs of Doing BusinessReferences; Appendices; A. Regression Results Using Alternative Data Set; B. Description of Semi-aggregate Data

Sommario/riassunto

Since the global financial crisis, corporate investment has been weak in India. Sluggish corporate investment would not only moderate growth from the demand side but also constrain growth from the supply side over time. Against this background, this paper analyzes the reasons for the slowdown and discusses how India can boost corporate investment, using both macro and firm-level micro data. Analysis of macro data indicates that macroeconomic factors can largely explain corporate investment but that they do not appear to account fully for recent weak performance, suggesting a key role of the business environment in reviving corporate investment. Analysis of micro panel data suggests that improving the business environment by reducing costs of doing



business, improving financial access, and developing infrastructure, could stimulate corporate investment.