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Cash flow effects on economic growth

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  • Miguel-Ángel Galindo Martín
  • María-Teresa Méndez Picazo

Abstract

Policy makers have traditionally considered the macroeconomic relations and the variables that can affect the economic objectives that they pursue, such as prices, employment, balance of payments, and economic growth. Recently, microeconomic behavior has also been considered. To complete the analysis, it is necessary to include those variables that define the firm's evolution and activities, and cash flow could be this kind of variable to be included in the analysis. The main objective of this paper is to show the relationship between cash flow and one of the final economic policy targets, economic growth. This paper considers the relationship between cash flow and applied economics, then develops the effects of cash flow on economic growth. Copyright International Atlantic Economic Society 2002

Suggested Citation

  • Miguel-Ángel Galindo Martín & María-Teresa Méndez Picazo, 2002. "Cash flow effects on economic growth," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 8(2), pages 155-159, May.
  • Handle: RePEc:kap:iaecre:v:8:y:2002:i:2:p:155-159:10.1007/bf02295346
    DOI: 10.1007/BF02295346
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    References listed on IDEAS

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    1. Deininger, Klaus & Squire, Lyn, 1998. "New ways of looking at old issues: inequality and growth," Journal of Development Economics, Elsevier, vol. 57(2), pages 259-287.
    2. Dechow, Patricia M. & Kothari, S. P. & L. Watts, Ross, 1998. "The relation between earnings and cash flows," Journal of Accounting and Economics, Elsevier, vol. 25(2), pages 133-168, May.
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