Enhancing Business Investment in the United Kingdom

By Agnese Carella, Ruo Chen, Xiaobo Shao

July 13, 2023

Preview Citation

Format: Chicago

Agnese Carella, Ruo Chen, and Xiaobo Shao. Enhancing Business Investment in the United Kingdom, (USA: International Monetary Fund, 2023) accessed November 21, 2024

Summary

The paper addresses the issue of weak business investment in the United Kingdom (UK) by analyzing aggregate investment trends in the UK and other G7 peers, and investment drivers for UK firms. Data show that business investment has been structurally low in the UK, and likely the key driver of the UK’s relatively weaker growth performance since the middle of the last decade. Econometric investigations confirm a negative impact of Brexit-related uncertainty, the importance of financing constraints on firms, and a complementary role for public capital.

Subject: COVID-19, Expenditure, Financial markets, Health, International organization, Market capitalization, Monetary policy, National accounts, Private investment, Public investment spending

Keywords: Brexit, Business investment, Capital, COVID-19, Econometric investigation, Global, Growth, Importance of financing constraint, Investment decision, Investment driver, Macro investment model, Market capitalization, Private investment, Public investment spending, Uncertainty

Publication Details

Pages:

16
Volume:

---
DOI:

---
Issue:

---
Series:

Selected Issues Paper No. 2023/050
Stock No:

SIPEA2023050
ISBN:

9798400249099
ISSN:

2958-7875

FACTSHEETS

RESOURCES

TOPICS

Flagship Publications

Other Publications

IMF reports and publications by country

Regional Offices

All News

See Also

For Journalists

Press Center

RESOURCES

FLAGSHIPS

KEY SERIES

IMF NOTES

Selected Issues Papers