This paper analyzes the determinants of investment in Chile from the microeconomic perspective, using a sampling data with 36 firms for 1992 to 2003. Applying panel data econometric techniques with alternative econometric methodologies, we concluded that the main idiosyncratic variables for investment were total assets, operational profits, liquidity, and the Tobin’s Q. At macroeconomic level significant variables were interest rate and GDP.
Keywords:
Investment, Q Tobin, Panel econometrics, Method of generalized moments
Carrasco, O. F., Johnson, C. A., & Núñez, H. A. (2005). Determinants of investment at the firm level: a panel analysis for Chile. Estudios De Administración, 12(1), 87–122. https://doi.org/10.5354/0719-0816.2005.56456
