So, a key question is what has caused such investment ratios to be so low, despite the otherwise favourable circumstances that have seemed to have held during recent years? There are several competing explanations, none of which are mutually exclusive, and all of which may have played some role in this. There are, perhaps, four main candidates as explanations. These are: 1. Growing corporate concentration and monopolisation; 2. Technology; 3. Managerial incentives; 4. Cheap labour.
