Determinants of Fixed Investment:A Study of Indian Private Corporate Manufacturing Sector
Published By: CDS on eSS | Published Date: March, 16 , 2005This paper analyses the determinants of fixed investment in the
Indian Private Corporate Manufacturing sector for the period 1973-2002,
using Annual Survey of Industries Data. It is argued that economic policy
of a nation is crucial in determining the investment behaviour in
developing countries rather than the traditional factors like output and
profit. Against the background of the financial sector deregulation
initiated in India since 1991, this study makes an attempt to analyse
whether the traditional factors or the economic policy variables plays a
major role in determining investment behaviour. A reduced form equation
derived from the neoclassical investment theory is used for the empirical
analysis. [Working Paper No. 369]
Author(s): V.R. Prabhakaran Nair | Posted on: Nov 16, 2010 | Views(978) | Download (584)