Enhancing Business Investment in the United Kingdom
July 13, 2023
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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
Pages:
16
Volume:
2023
DOI:
Issue:
050
Series:
Selected Issues Paper No. 2023/050
Stock No:
SIPEA2023050
ISBN:
9798400249099
ISSN:
2958-7875
