The flexible accelerator model of investment: An application to Ugandan tea-processing firms
The study uses the flexible accelerator model to examine determinants of the level and growth of investment in machinery and equipment for a sample of tea-processing firms in Uganda. Using a dynamic panel data model, we find that, in the long run, the level of investment in machinery and equipment is positively influenced by the accelerator, firm-level liquidity, and a favourable investment climate in the country. Depreciation of the exchange rate negatively affects investment. We conclude that firm-level strategies that increase output and profitability, and a favourable investment policy climate, are imperative to the growth of the tea industry.
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| Main Authors: | , , |
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| Format: | Journal Article biblioteca |
| Language: | English |
| Published: |
2015-03-15
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| Subjects: | agriculture, investment, |
| Online Access: | https://hdl.handle.net/10568/68572 http://www.afjare.org/resources/issues/vol_10_no1/1.Twine%20et%20al.pdf |
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