Determinants of investment in Barbados

Author(s): Griffith, Jennifer S (1998)

Created 22 Jul, 1998
Categories Working Papers
Views: 2305
This paper investigates trends of investment in the Barbadian economy from a sectoral point of view - the traded and non-traded sectors - and seeks to determine the factors driving investment in these two sectors of the economy. Since an equitable sectoral distribution of investment is essential for balanced growth and development in the economy, this study will enlighten policy-making decisions aimed at encouraging (or discouraging) investment in the traded and non-traded sectors. The paper is presented as follows: An outline of the different theories purported for modeling investment behaviour along with an analysis of their relevance to developing countries is presented in Section 1. In Section 2, an investigation of determinants of investment in each sector is carried out. The preferred hypothesis along with methodology is presented in Section 3. Analysis of the results is outlined in Section 4 followed by some concluding remarks.

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