Investment in Emerging Markets We Are Not in Kansas Anymore…Or Are We?
IMF Working Papers, April 3, 2015
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- Investment in Emerging Markets We Are Not in Kansas Anymore…Or Are We?
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Bibliographic details
- Authors: Nicolas E Magud, Sebastian Sosa
- Published: April 3, 2015
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781475534221.001
Key findings
- Private investment growth in emerging markets has decelerated in recent years, but:
- It "came down from cyclical highs and remains close to pre-crisis trends."
- Investment-to-output ratios generally "remain close to or above historical averages."
- Lower commodity export prices, lower expected profitability, a moderation in capital inflows, and increased leverage account for the bulk of the recent investment deceleration.
Empirical relationships documented
- Investment is positively related to:
- expected future profitability,
- cash flows,
- debt flows,
- (country-specific) commodity export prices,
- capital inflows.
- Investment is negatively associated with:
- leverage.
Subject tags and keywords (as provided)
- Subject: Balance of payments, Capital inflows, Commodity prices, Currencies, Export prices, Money, National accounts, Prices, Private investment
- Keywords: Asia and Pacific, capital expenditure, capital inflows, cash flow, commodity export price, commodity prices, cost of capital, Currencies, EM firm, emerging markets, Export prices, financial constraint, financial constraints, Investment, investment decision, mid-sized firm, Private investment, study emerging market company, WP
Nicolas E Magud, and Sebastian Sosa. "Investment in Emerging Markets We Are Not in Kansas Any More…Or Are We?", IMF Working Papers 2015, 077 (2015), accessed 9/17/2026, https://doi.org/10.5089/9781475534221.001