Aggregate and sector-level investment equations are estimated for a panel of 17 OECD countries using an error correction methodology. A real currency depreciation is found to reduce aggregate investment and investment in all nine sectors in the short run, and aggregate investment in the long...

Large external imbalances have become a policy concern. This study investigates the determinants of external balances for regions within a single country--Canadian provinces--as well as for a sample of 18 OECD countries. External balance adjustment may differ for provinces since there are few...