A Review of Inventory Investment: The Macro and Micro Perspective

Abstract

This article combed the domestic and foreign researches on inventory investment since 1990. We find that researches mainly focus on the macro level of the relationship between inventory investment and business cycle, the effects of inflation or interest rates on inventory adjustment. While in the micro enterprise level, they study the determiners of inventory investment, including financing constraints, size and location. Besides, the role of inventory investment behavior on corporate performance has not yet reached a consensus. Based on the analysis of the existing lite-ratures, we put forward the possible directions for future research in the field of inventory investment , combining with China's specific conditions.