EconPapers    
Economics at your fingertips  
 

Legal Environment, Finance Channels and Investment: The East African Example

Kalu Ojah (), Tendai Gwatidzo and Sheshangai Kaniki

Journal of Development Studies, 2010, vol. 46, issue 4, 724-744

Abstract: How do legal environments and finance affect investments by firms in the East African community? Property rights, external and internal finance channels - key conduits of the transmission mechanism from 'legal environment' to 'investment'- individually and interactively affect firms' decision to invest. Firms that perceive secure property rights are more likely to invest in fixed capital. The interactions suggest governments in this community would do well to pursue investment/growth policies that slant heavily towards financial markets deepening while not ignoring enhancement of legal infrastructures. Overall, property rights, external finance, internal finance, firm size, and an export-orientation, are important determinants of the investment decision.

Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/00220380903012722 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:jdevst:v:46:y:2010:i:4:p:724-744

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/FJDS20

DOI: 10.1080/00220380903012722

Access Statistics for this article

Journal of Development Studies is currently edited by Howard White, Oliver Morrissey and Ken Shadlen

More articles in Journal of Development Studies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().

 
Page updated 2021-03-28
Handle: RePEc:taf:jdevst:v:46:y:2010:i:4:p:724-744