Investment under risks and uncertainty in Afghanistan / Subika Farazi, Ahmed Rostom, Rishabh Sinha
Contributor(s): Resource type: Ressourcentyp: Buch (Online)Book (Online)Language: English Series: World Bank E-Library Archive | Policy research working paper ; 8443Publisher: Washington, D.C. : World Bank Group, Finance, Competitiveness and Innovation Global Practice & Development Research Group, May 2018Description: 1 Online-Ressource (circa 38 Seiten) : IllustrationenSubject(s): Genre/Form: Additional physical formats: Erscheint auch als: Investment under Risks and Uncertainty in Afghanistan. Druck-Ausgabe Washington, D.C : The World Bank, 2018DOI: DOI: 10.1596/1813-9450-8443Online resources: Summary: This paper investigates the state of low investment in Afghanistan by studying how investment decisions interact with risks and uncertainty in the presence of underdeveloped financial markets. The analysis shows that investing firms experience a higher probability of being affected by events related to crime and corruption and spend more on security arrangements. Firms that participate in the formal financial sector are also subject to higher levels of risk and uncertainty. As more productive firms face higher risks and uncertainty, a model of resource allocation with heterogeneous firms is used to quantify the economic loss from crime and corruption. The estimated aggregate output loss of 12 percent is significantly higher than the 7 percent loss observed in the absence of the resource allocation channelPPN: PPN: 1026816637Package identifier: Produktsigel: ZDB-1-WBA | ZDB-110-WBONo physical items for this record
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