When investment is irreversible, theory suggests that firms will be "reluctant to invest." This reluctance creates a … wedge between the discount rate guiding investment decisions and the standard Jorgensonian user cost (adjusted for risk). We …

This paper aims to investigate the relationship between financial liberalization on the one hand and saving, investment … investment (although there are some signs to believe that liberalization may actually reduce rather than increase domestic saving …), whereas it is positively associated with private investment, as well as with per capita GDP growth. We find a negative …