This paper analyses how financial and labor market imperfections jointly influence investment. The contemporaneous presence of imperfections gives rise to a negative correlation between EPL and investment. Our results support the policies promoted by European institutions to reform both markets. (C) 2008 Elsevier B.V. All rights reserved.
Financial and labor market imperfections and investment / Giorgio, Calcagnini; Germana, Giombini; Saltari, Enrico. - In: ECONOMICS LETTERS. - ISSN 0165-1765. - 102:1(2009), pp. 22-26. [10.1016/j.econlet.2008.10.005]