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Risk, Financial Constraints and Equipment Investment in Ghana: A Firm-level Analysis

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Investment and Risk in Africa

Part of the book series: Studies on the African economies ((SAES))

Abstract

This chapter analyses the impact of uncertainty on the investment behaviour of Ghanaian manufacturing firms using a panel data set for the years 1991 to 1993. During this period the macroeconomic environment was changing: inflation accelerating, the real exchange rate depreciating sharply and real interest rates increasing. This volatility in relative prices created uncertainty for manufacturing firms. In addition, import competition and weak domestic demand meant that firms in some sectors were uncertain about future demand for their products.

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Authors
  1. Catherine Pattillo
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Editor information

Editors and Affiliations

  1. Policy Research Group, The World Bank, Washington, DC, USA

    Paul Collier (Director) (Director)

  2. Research Department, International Monetary Fund, Washington, DC, USA

    Catherine Pattillo

Copyright information

© 2000 Centre for the Study of African Economies

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Cite this chapter

Pattillo, C. (2000). Risk, Financial Constraints and Equipment Investment in Ghana: A Firm-level Analysis. In: Collier, P., Pattillo, C. (eds) Investment and Risk in Africa. Studies on the African economies. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-15068-7_4

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