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Investment And Export-Led Industrialization: Financial Constraints And Export Promotion Of East Asian Firms

Author

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  • Mamoru Nagano

    (Senior Economist, Mitsubishi Research Institute, Inc.)

Abstract

This paper aims to empirically examine the determinants that influence the investment decisions of firms in East Asia, a region that propelled its growth through a predominantly export-led industrialization strategy. Empirical results suggest that a firm¡¯s cash flow, representing internal funding capability, have significantly positive relationship on firm investment decisions in all the sample countries in the region. In addition, the study found that export expansion led to increasing internal funding capability, which had a positive influence on the firm¡¯s investment decision.

Suggested Citation

  • Mamoru Nagano, 2005. "Investment And Export-Led Industrialization: Financial Constraints And Export Promotion Of East Asian Firms," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 30(1), pages 81-93, June.
    • Handle: RePEc:jed:journl:v:30:y:2005:i:1:p:81-93
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    References listed on IDEAS

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    More about this item

    Keywords

    Corporate Finance; East Asia; Investment;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies

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