Determinants of Private Investment: Time Series Evidence from Bangladesh
MetadataShow full item record
This article examines the determinants of private investment in Bangladesh using the standard time series econometric analysis. The empirical results partially support the flexible accelerator hypothesis. It is partial in the sense that real interest rate is not statistically significant in determining private investment whereas national output is very much effective in the long run. Further, government expenditure is found to be a significant determinant of private investment, both in the long- and short run. Government expenditures crowd out private investment, however, the effect is minimal as the investment is not interest responsive. Thus, government expenditure can be used effectively to lift output in case of recession while monetary policy is not so effective in recession because reducing the interest rate investment cannot be increased.
Showing items related by title, author, creator and subject.
Hassan, AFM Kamrul (2010)This thesis examines the relationship between population structure and the real exchange rate in 23 OECD countries over the period 1980–2006. The motivation for this research stems mainly from the Life-Cycle Hypothesis ...
Private equity takeovers in Australia : three essays on motivation, managerial share ownership and governance effectsRashid, Mamunur (2012)Private equity transactions have grown considerably during the last few years. With an increase in the growth and size of this market, it has become increasingly important to understand the economic forces behind these ...
Christopher, Joseph E.R. (2009)Over the last two decades a series of spectacular failures in corporate governance has raised concern about good governance of private and public sector organisations. These concerns inevitably extend to the Australian ...