Publication
SOTA Review
What do we know about factors that affect business investment decisions?
Published: 13 August 2024
ERC SOTA review No62
Associated Themes
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Business Growth -
Entrepreneurship -
Finance -
Productivity and performance
The UK has a longstanding ‘productivity puzzle’, which has received considerable attention. In the global financial crisis the UK’s productivity fell more and then recovered slower than in other OECD countries. One of explanations given for the UK’s lagging productivity growth is the lower business investment rates found in the UK compared to other comparable economies. The process of investment decision-making and the factors that feed into it is an understudied field that this paper aims to address by reviewing key evidence from the post global financial
crisis period.
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