The purpose of this paper is to reveal the correlation between the gross capital formation and the gross domestic product in countries of the European Union in 2007, during the period 1999-2006. The evaluation is made both on demand side and on supply side. On the demand side we take into account the gross capital formation dynamics and structure and the gross domestic product dynamics. On the supply side calculate the capital accumulation efficiency, through modification of the formulae resulted from Domar’s economic growth model in order to emphasise the impact of domestic demand and net export changes. In the end we present some conclusions and proposals for gross capital formation contribution to economic growth methodology improvement.
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Volume (Year): 26 (2008(XVIII)) Issue (Month): 1(35) (June) Pages: 166-179 Download reference. The following formats are available: HTML
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Find related papers by JEL classification: B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology C19 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Other E22 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Capital; Investment; Capacity O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
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