Abstract
This study examines investment behavior of firms that belong to an electric power industry and Japan's manufacturing industries. To this end, this study estimates investment functions using a panel data set from 1990 to 2009 and reveals what factors influence the investment of the firms. In particular, we compare the results between manufacturing and electric power industries because it is generally believed that the investment of the electric power industry is different from that of the other industries due to government regulation. In addition, we examine the investment of generation and transmission/distribution network divisions of the electric power industry, respectively. As a consequence, this study discusses business implications from differences of the results.
