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


Issue Date:
2015-03
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/200590
Published in:
Volume 10, Number 1
African Journal of Agricultural and Resource Economics
Total Pages:
15




 Record created 2017-04-01, last modified 2017-08-28

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)