The flexible accelerator model of investment: An application to Ugandan tea-processing firms

The study uses the flexible accelerator model to examine determinants of the level and growth of investment in machinery and equipment for a sample of tea-processing firms in Uganda. Using a dynamic panel data model, we find that, in the long run, the level of investment in machinery and equipment i...

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Detalles Bibliográficos
Autores principales: Twine, Edgar E., Kiiza, B., Bashaasha, B.
Formato: Journal Article
Lenguaje:Inglés
Publicado: 2015
Materias:
Acceso en línea:https://hdl.handle.net/10568/68572
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author Twine, Edgar E.
Kiiza, B.
Bashaasha, B.
author_browse Bashaasha, B.
Kiiza, B.
Twine, Edgar E.
author_facet Twine, Edgar E.
Kiiza, B.
Bashaasha, B.
author_sort Twine, Edgar E.
collection Repository of Agricultural Research Outputs (CGSpace)
description The study uses the flexible accelerator model to examine determinants of the level and growth of investment in machinery and equipment for a sample of tea-processing firms in Uganda. Using a dynamic panel data model, we find that, in the long run, the level of investment in machinery and equipment is positively influenced by the accelerator, firm-level liquidity, and a favourable investment climate in the country. Depreciation of the exchange rate negatively affects investment. We conclude that firm-level strategies that increase output and profitability, and a favourable investment policy climate, are imperative to the growth of the tea industry.
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spelling CGSpace685722023-02-15T10:03:28Z The flexible accelerator model of investment: An application to Ugandan tea-processing firms Twine, Edgar E. Kiiza, B. Bashaasha, B. agriculture investment The study uses the flexible accelerator model to examine determinants of the level and growth of investment in machinery and equipment for a sample of tea-processing firms in Uganda. Using a dynamic panel data model, we find that, in the long run, the level of investment in machinery and equipment is positively influenced by the accelerator, firm-level liquidity, and a favourable investment climate in the country. Depreciation of the exchange rate negatively affects investment. We conclude that firm-level strategies that increase output and profitability, and a favourable investment policy climate, are imperative to the growth of the tea industry. 2015-03-15 2015-10-19T11:40:49Z 2015-10-19T11:40:49Z Journal Article https://hdl.handle.net/10568/68572 en Open Access Twine, E.E., Kiiza, B. and Bashaasha, B. 2015. The flexible accelerator model of investment: An application to Ugandan tea-processing firms. African Journal of Agricultural and Resource Economics 10(1):1-15.
spellingShingle agriculture
investment
Twine, Edgar E.
Kiiza, B.
Bashaasha, B.
The flexible accelerator model of investment: An application to Ugandan tea-processing firms
title The flexible accelerator model of investment: An application to Ugandan tea-processing firms
title_full The flexible accelerator model of investment: An application to Ugandan tea-processing firms
title_fullStr The flexible accelerator model of investment: An application to Ugandan tea-processing firms
title_full_unstemmed The flexible accelerator model of investment: An application to Ugandan tea-processing firms
title_short The flexible accelerator model of investment: An application to Ugandan tea-processing firms
title_sort flexible accelerator model of investment an application to ugandan tea processing firms
topic agriculture
investment
url https://hdl.handle.net/10568/68572
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