02056cas a2200277 a 4500 AALejournalIMF019372 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498317429 1018-5941 BD-DhAAL BD-DhAAL Lian, Weicheng. The Price of Capital Goods : A Driver of Investment Under Threat / Weicheng Lian, Natalija Novta, Evgenia Pugacheva, Yannick Timmer. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (36 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 Over the past three decades, the price of machinery and equipment fell dramatically relative to other prices in advanced and emerging market and developing economies. Using cross-country and sectoral data, we show that the decline in the relative price of tangible tradable capital goods provided a significant impetus to the capital deepening that took place during the same time period. The broad-based decline in the relative price of machinery and equipment, in turn, was driven by the faster productivity growth in the capital goods producing sectors relative to the rest of the economy, and deeper trade integration, which induced domestic producers to lower prices and increase their efficiency. Our findings suggest an additional channel through which rising trade tensions and sluggish productivity could threaten real investment growth going forward. Mode of access: Internet Novta, Natalija. Pugacheva, Evgenia. Timmer, Yannick. IMF Working Papers; Working Paper ; No. 2019/134 Full text available on IMF http://elibrary.imf.org/view/journals/001/2019/134/001.2019.issue-134-en.xml IMF e-Library