{
  "title": "Does the Business Environment Affect Corporate Investment in India?",
  "publication": "IMF Working Papers, March 1, 2012",
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  "summary": "Since the global financial crisis, corporate investment has been weak in India. Sluggish corporate investment would not only moderate growth from the demand side but also constrain growth from the supply side over time.",
  "sections": [
    {
      "heading": "Summary and context",
      "content": "- Since the global financial crisis, corporate investment has been weak in India.\n- Sluggish corporate investment would not only moderate growth from the demand side but also constrain growth from the supply side over time.\n- The paper analyzes reasons for the slowdown and discusses how India can boost corporate investment using both macro and firm-level micro data."
    },
    {
      "heading": "Major findings — macro data analysis",
      "content": "- Macroeconomic factors can largely explain corporate investment.\n- Macroeconomic factors do not appear to account fully for recent weak performance.\n- The incomplete explanatory power of macro factors suggests a key role for the business environment in reviving corporate investment."
    },
    {
      "heading": "Major findings — micro (firm-level panel) data analysis",
      "content": "- Improving the business environment could stimulate corporate investment.\n- Specific micro-level channels identified:\n  - Reducing costs of doing business.\n  - Improving financial access.\n  - Developing infrastructure."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Focus on reforms that lower firms’ operating costs to encourage investment.\n- Enhance financial access for firms to reduce financing frictions and support investment.\n- Prioritize infrastructure development to alleviate constraints on firm-level investment decisions."
    },
    {
      "heading": "Key metadata cited in the source",
      "content": "- Author: Kiichi Tokuoka\n- Publication date: March 1, 2012\n- Series: Working Paper No. 2012/070\n- Pages: 22\n- DOI: https://doi.org/10.5089/9781463939069.001\n\nKiichi Tokuoka. \"Does the Business Environment Affect Corporate Investment in India?\", IMF Working Papers 2012, 070 (2012), March 1, 2012.\n\n---\n\n Content in this bundle\n\n- wp1270 - References\n  - wp1270 - References (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp1270 - References (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/does-the-business-environment-affect-corporate-investment-in-india-25762"
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    "Authors: Kiichi Tokuoka",
    "Published: March 1, 2012",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781463939069.001",
    "Since the global financial crisis, corporate investment has been weak in India.",
    "Sluggish corporate investment would not only moderate growth from the demand side but also constrain growth from the supply side over time.",
    "The paper analyzes reasons for the slowdown and discusses how India can boost corporate investment using both macro and firm-level micro data.",
    "Macroeconomic factors can largely explain corporate investment.",
    "Macroeconomic factors do not appear to account fully for recent weak performance.",
    "The incomplete explanatory power of macro factors suggests a key role for the business environment in reviving corporate investment.",
    "Improving the business environment could stimulate corporate investment.",
    "Specific micro-level channels identified:",
    "Focus on reforms that lower firms’ operating costs to encourage investment.",
    "Enhance financial access for firms to reduce financing frictions and support investment.",
    "Prioritize infrastructure development to alleviate constraints on firm-level investment decisions.",
    "Author: Kiichi Tokuoka",
    "Publication date: March 1, 2012",
    "Series: Working Paper No. 2012/070",
    "Pages: 22",
    "DOI: https://doi.org/10.5089/9781463939069.001",
    "**_wp1270 - References**"
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