Dear colleague,

we cordially invite you to the following event:

Investment Accelerations: The Role of the Real Exchange Rate Among Other Factors

Prof. Arslan Razmi
University of Massachusetts at Amherst

Thursday, 19 April 2018, 4:00 pm (16:00 CEST)
wiiw, Rahlgasse 3, 1060 Vienna

Existing empirical studies have mainly focused on determinants of average investment levels. We investigate instead episodes of accelerated capital stock growth that last eight years or longer. We find that episodes are relatively common, even in low growth regions, but more so in middle income and Asian countries. After identifying 175 such episodes between 1950-2014, we employ probit analysis to explore their characteristics. Turning points in investment tend to be preceded by undervalued real exchange rates, macroeconomic stability, and net capital outflows (especially portfolio outflows). We also find strong evidence for a negative correlation with the capital to output ratio and per capita GDP, and a positive correlation with a human capital index. Investment surges appear to be associated with structural change in the economy and the trade balance. ...more

We kindly ask you to register for the event. Participation is free of charge.

Best regards,