01957cas a2200277 a 4500 AALejournalIMF015029 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498364805 1018-5941 BD-DhAAL BD-DhAAL Barkbu, Bergljot. Investment in the Euro Area : Why Has It Been Weak? / Bergljot Barkbu, Pelin Berkmen, Pavel Lukyantsau, Sergejs Saksonovs. Washington, D.C. : International Monetary Fund, 2015. 1 online resource (30 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 Investment across the euro area remains below its pre-crisis level. Its performance has been weaker than in most previous recessions and financial crises. This paper shows that a part of this weakness can be explained by output dynamics, particularly before the European sovereign debt crisis. The rest is explained by a high cost of capital, financial constraints, corporate leverage, and uncertainty. There is a considerable cross country heterogeneity in terms of both investment dymanics and its determinants. Based on the findings of this paper, investment is expected to pick up as the recovery strengthens and uncertainty declines, but persistent financial fragmentation and high corporate leverage in some countries will likely continue to weigh on investment. Mode of access: Internet Berkmen, Pelin. Lukyantsau, Pavel. Saksonovs, Sergejs. IMF Working Papers; Working Paper ; No. 2015/032 Full text available on IMF http://elibrary.imf.org/view/journals/001/2015/032/001.2015.issue-032-en.xml IMF e-Library