01843cas a2200241 a 4500 AALejournalIMF000967 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451852257 1018-5941 BD-DhAAL BD-DhAAL Bigsten, Arne. Adjustment Costs, Irreversibility and Investment Patterns in African Manufacturing / Arne Bigsten. Washington, D.C. : International Monetary Fund, 1999. 1 online resource (53 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines dynamic patterns of investment in Cameroon, Ghana, Kenya, Zambia and Zimbabwe, assessing the consistency of those patterns with different adjustment cost structures. Using survey data on manufactured firms, we document the importance of zero investment episodes and lumpy investment. The proportion of firms experiencing large investment spikes is significant in explaining aggregate manufacturing investment. Taken together, evidence from descriptive statistics, average investment regressions modeling the response to capital imbalance, and transition data analysis indicate that irreversibility is an important factor considered by firms when making investment plans. The picture is not unanimous however, and some explanations for the mixed results are proposed. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1999/099 Full text available on IMF http://elibrary.imf.org/view/journals/001/1999/099/001.1999.issue-099-en.xml IMF e-Library