Investment by Large Firms in Argentina

Alvaro Piris Chavarri

No 2010/003, IMF Working Papers from International Monetary Fund

Abstract: Strong growth in investment made a key contribution to the economic recovery in Argentina earlier this decade. The paper uses firm-level data to assess changes in financing constraints and the linkages between real investment at the firm level and macroeconomic developments in the real exchange rate and real interest rates. It concludes that several factors explain the performance of investment, including the real exchange rate, the cost of borrowing as well as an easing of financing constraints.

Keywords: WP; interest rate; cost of capital; firms variable; investment decision; Argentina; investment; firm level; cash flow; Currencies; Real exchange rates; Stocks; Real interest rates; Financial statements; Middle East; East Africa; Central Africa; Europe; Africa (search for similar items in EconPapers)
Pages: 33
Date: 2010-01-01
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Citations: View citations in EconPapers (2)

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