Explaining Recent Investment Weakness: Causes and Implications

Abstract

This paper investigates the drivers of investment growth in emerging market and developing economies with a focus on the most recent slowdown over the 2010-2015 period. Using panel regression techniques, we find that the recent investment slowdown in emerging market and developing economies is associated with a range of obstacles: weak economic activity, negative terms-of-trade shocks, declining foreign direct investment inflows, elevated private debt burdens, and heightened political risk. This stands in contrast with advanced economies, where weak economic activity is the most important factor. We briefly discuss policy implications of our findings.

Which User-Friendly Model is the Best for BASEL-III? An Emerging Market Study

“…It then backtests the risk forecasts for twenty commercial banks that operate in Bangladesh. Different from the risk prediction and measurement in previous research perspectives (Lu et al, 2022;Sun et al, 2022;Medina-Olivares et al, 2022;Chai et al, 2019), the investigation is particularly from the perspective of individual investors (and not from institutions and enterprises) and from emerging economies (like Bangladesh) where investors' technical skills are certainly much poorer compared to those in the developed parts of the world (Islamaj et al, 2019). This surely has a bearing on an individual investor's sufferings, with serious consequences in their society.…”