研究報告書

Investment Behavior and Business Sentiments of Small and Medium Enterprises

eng

144

1

22

2009-01-21

Version of Record

逐次的効用関数・曖昧さ・時間不整合性を考慮した国際マクロ分析;4

This paper uses survey data to investigate how subjective perceptions of business conditions affect the investment behavior of small and medium enterprises (SMEs) in Japan. Using panel data, we show that while positive perceptions of business conditions induce investment, long-term improvements in business conditions are required for manufacturing firms to invest. We also find that perceptions of financial conditions affect investment: firms invest if it is easier to borrow money and if interest rates are lower in the current period. However, if firms expect a decrease in future interest rates, they may delay investment and are unlikely to invest in the current period. Finally, firms suffering a shortage of labor are likely to invest. This is because unlike large firms, SMEs may face some difficulty in employing the labor force required, and thereby substitute capital for labor.

Working Paper