Theoretical and Applied Economics
No. 4 / 2024 (641), Winter
Investigating the corporate debt and real investment nexus: dynamics and challenges in a shifting financial landscape
University of Kashmir, India
Simtiha Ishaq MIR
University of Kashmir, India
Abstract. This paper studies the interrelationship between corporate debt and Real Investment in view of the pivotal role played by private debt in economic growth and development. With a focus on the financial intricacies and upcoming challenges faced by emerging markets, this paper investigates how corporate debt influences and shapes gross capital formation within emerging economies. The study finds a negative relation between the two variables with a one per cent increase in corporate debt to GDP ratio resulting in about 4 per cent decline in real investment in the short run and long run. Trade openness however has a positive coefficient, indicating that it has a stimulating impact on real investment within the economy. Through a comprehensive analysis, the study not only contributes to the existing body of knowledge but also offers valuable insights for crafting effective financial policies tailored to the unique challenges of these evolving markets.
Contents
Digitalization and innovation: a regional perspective on their interaction
Assessing the macroeconomic challenges in Romania after the economic and financial crisis
Green finance and innovation input: the promoters of carbon neutrality in China
A simple model of online marketing, production, profit and growth
The relationship of digital payments, macroeconomic variables, and banking stability in developing Asia
Modelling the relationship between inflation and uncertainty with existence of structural break: evidence from Azerbaijan
Analysis of the global energy resources evolution in the context of the population growth
Assessing the impact of energy and macroeconomic shocks on the Romanian economy: a Bayesian VAR approach
Two faces of the same coin: integrated perspectives of public and private debt on the effects of interdependence on financial stability
Institutional quality and sustainability: empirical study in 11 MENA countries
The effect of population ageing on savings: a time series analysis for Türkiye
Workplace economics – How does the Impostor Syndrome affect organisational output?
COVID-19 and the labour market: regional shifts of human capital working in technology and employment
Validity of the environmental Kuznets Curve in Bangladesh under the role of financial development
The impact of doing business indicators on economic growth in emerging market economies: a cross-sectional analysis
The essential role of U.S.-China tensions: a fresh insight into the gold market
The dispersion of poverty in some Romanian rural areas – good examples of rural localities with the lowest poverty rates
The stability and Growth Pact in Practice: inefficiencies of previous debt rules and the way forward
Leaders in disguise: power, perception, and paradox – economics and the fragile authority of politicians
Investigating the corporate debt and real investment nexus: dynamics and challenges in a shifting financial landscape
The hidden economy revealed: profiling informal workers through random forest classification
The impact of oil price shocks on economic growth in Algeria
The determinants of political instability: the role of mining resources
Quantitative easing and its implications for contingent convertible triggers: an analytical perspective