The Investment Supply Response of Traded-Goods Industries

In this paper, the author uses neoclassical investment equations to examine investment behaviour in four groups of Canadian industries: export-oriented, import-competing, two- way-trade, and low-trade. Investment in these industries over the second half of the 1970s is shown to have been less than the level predicted by the estimated equations, although econometric tests do not show a structural change in investment behaviour.

Content Type(s): Staff Research, Technical Reports
JEL Code(s): E, E2, E22