Detail Essays on investment, trade, and financial policy Bibliografi Author: Shilpi, Forhad Jahan Topik: ECONOMICS; GENERAL|ECONOMICS; THEORY Bahasa: (EN )    ISBN: 0-591-72865-6     Penerbit: John Hopkins University Press     Tahun Terbit: 1998     Jenis: Theses - Dissertation Fulltext: 9821196.pdf (0.0B; 0 download) Abstract This thesis examines theoretically and empirically the impact of trade, financial, and macroeconomic policies on investment. Chapter 2 explains the observed variation in the effectiveness of trade protection policy across countries and across industries using the concept of time consistency of a policy. In a rational expectations equilibrium, only a time consistent policy is expected to attain its goals. Using a two period investment game, the theoretical model shows that in the absence of precommitment, the optimal tariff policy with a positive tariff in both periods is not time consistent. The possibility of time consistency and hence the effectiveness of the policy improves with an increase in the domestic and foreign market sizes, the efficiency of investment in cost reduction, and a decrease in the time preference rate. The financial intermediation model presented in chapter 3 shows a theoretically consistent way of introducing policy variables in the investment regression. This chapter shows that credit rationing in the financial market caused by government interventions is a necessary condition for the inclusion of policy variables in the investment equation. The set of relevant policy variables is determined by the nature of policy intervention and institutional characteristics of the financial markets. When credit is targeted and its use is fully monitored, the set includes any policy variable that affects the availability of credit. In the presence of arbitrage, the set includes the rates of returns on other activities (e.g. black market premia). Chapter 4 presents evidence on the impact of industry targeting policies on investment using panel data from Bangladesh. The presence of industry targeting implies that the targeted firms enjoyed easy access to credit, trade and other benefits, and the non-targeted firms faced binding financing constraints. The empirical results suggest that the non-targeted firms are indeed credit constrained. The targeted firms invested less than the amount of subsidy they received. Many targeted firms behaved as if they faced binding credit constraints. These firms not only diverted a part of the subsidies they received to other uses but also demanded more subsidies thereby undermining the effectiveness of the targeting policies. Opini Anda Klik untuk menuliskan opini Anda tentang koleksi ini! Lihat Sejarah Pengadaan  Konversi Metadata   Kembali

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