05242oam 22012374 450 991078852670332120230829002201.01-4623-6897-21-4527-3500-X1-282-54125-01-4527-0339-69786613821966(CKB)3360000000443234(EBL)3014519(SSID)ssj0000940136(PQKBManifestationID)11967010(PQKBTitleCode)TC0000940136(PQKBWorkID)10956252(PQKB)10387085(OCoLC)694141218(MiAaPQ)EBC3014519(IMF)WPIEE2006152(EXLCZ)99336000000044323420020129d2006 uf 0engurcn|||||||||txtccrDomestic Investment and the Cost of Capital in the Caribbean /Shaun RoacheWashington, D.C. :International Monetary Fund,2006.1 online resource (46 p.)IMF Working Papers"June 2006."1-4518-6412-4 Includes bibliographical references.""Contents""; ""I. INTRODUCTION""; ""II. TRENDS IN REGIONAL INVESTMENT 6""; ""III. LITERATURE REVIEW""; ""IV. A BASIC INVESTMENT MODEL""; ""V. DATA""; ""VI. ESTIMATION ISSUES""; ""VII. ESTIMATION RESULTS""; ""VIII. CONCLUSIONS""; ""References""; ""Data Sources and Estimates ""Investment-to-GDP ratios across the Caribbean tend to be relatively high. In many countries, these ratios have been trending higher since the mid-1990s, largely reflecting public investment and foreign direct investment. Private domestic investors have been less prominent. This may be one reason why such high investment has delivered Caribbean growth rates below the middle-income average. This paper seeks to understand how higher private investment may be encouraged. Using new data, it concludes that: the multiplier effects of public investment and FDI on private domestic investment are weak; and private domestic investment (PDI) is sensitive to the cost of capital. Public policy designed to raise PDI should focus on creating conditions for a lower cost of capital. The focus should be on removing barriers to lower real interest rates, rather than the further extension of costly tax concessions.IMF Working Papers; Working Paper ;No. 2006/152InvestmentsCaribbean AreaCapital costsCaribbean AreaBanks and BankingimfInvestments: GeneralimfInvestments: StocksimfPublic FinanceimfNational Government Expenditures and Related Policies: InfrastructuresimfOther Public Investment and Capital StockimfPension FundsimfNon-bank Financial InstitutionsimfFinancial InstrumentsimfInstitutional InvestorsimfInterest Rates: Determination, Term Structure, and EffectsimfInvestmentimfCapitalimfIntangible CapitalimfCapacityimfPublic finance & taxationimfInvestment & securitiesimfFinanceimfMacroeconomicsimfStocksimfPublic investment and public-private partnerships (PPP)imfReal interest ratesimfPublic investment spendingimfPrivate investmentimfPublic-private sector cooperationimfInterest ratesimfPublic investmentsimfSaving and investmentimfTrinidad and TobagoimfInvestmentsCapital costsBanks and BankingInvestments: GeneralInvestments: StocksPublic FinanceNational Government Expenditures and Related Policies: InfrastructuresOther Public Investment and Capital StockPension FundsNon-bank Financial InstitutionsFinancial InstrumentsInstitutional InvestorsInterest Rates: Determination, Term Structure, and EffectsInvestmentCapitalIntangible CapitalCapacityPublic finance & taxationInvestment & securitiesFinanceMacroeconomicsStocksPublic investment and public-private partnerships (PPP)Real interest ratesPublic investment spendingPrivate investmentPublic-private sector cooperationInterest ratesPublic investmentsSaving and investmentRoache Shaun1462118DcWaIMFBOOK9910788526703321Domestic Investment and the Cost of Capital in the Caribbean3670986UNINA