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Liberalization and business investment in India

Athukorala, Prema-Chandra; Sen, Kunal


This paper develops a model of business investment in developing countries and illustrates it through an application to India. The model is derived from the standard theory of business investment, with appropriate adoption to reflect structural features specific to developing countries. The estimation results suggest that the level of the capital stock, rental cost of capital, the level of domestic economic activity and public investment are significant determinants of business investment in...[Show more]

CollectionsANU Research Publications
Date published: 2001
Type: Conference paper


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