Investment - in both facilities and know-how - is essential for
growth. Economists try to understand the forces that determine
investment, but investment behaviour is unruly; often the term
animal spirits is used to explain the resulting volatility. This
volume presents studies to explain international investment
behaviour and assess its impact on growth and jobs. The authors
also examine policy measures to reverse the climate of low
investment that has characterised recent decades. The contributors
examine how well standard models of investment work, the role of
finance constraints, the effect of risk and uncertainty, the impact
of alternative forms of corporate governance, the forces shaping
the adoption of new technology, the impact of foreign direct
investment, the effect of investment on the NAIRU and the causal
structure of investment and growth. Editors introductions to the
different sections of the book provide comprehensive overviews of
the main theories of investment, the impact of investment on growth
and employment and examine the main questions raised for policy
makers.
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