Investment shocks play a crucial role in driving economic fluctuations in small open economies. By introducing Marginal Efficiency of Investment (MEI) shocks into a model, researchers found that these shocks have a bigger impact on the economy than productivity shocks. The study shows that changes in investment levels during times of recession are mainly driven by these shocks, highlighting their importance in understanding economic ups and downs. The findings suggest that focusing on investment shocks can provide valuable insights into the dynamics of small open economies.