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Industrial Investment in the European Community

Daniel Weiserbs ()

No 1984011, Discussion Papers (REL - Recherches Economiques de Louvain) from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

Abstract: The purpose of this paper is to study the industrial investment in six major countries of the European Community. According to our results, demand prospects are the main determinants of investment with adjustment lags altered by firm’s self-financing capacity. Even when relative prices have significant effects, their quantitative importance is rather weak. This suggests that one should not anticipate a recovery in industrial investment without an increase in the expected growth rate demand.

Pages: 14
Date: 1984-03-01
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