IDEAS home Printed from https://ideas.repec.org/a/prg/jnlpol/v2020y2020i3id1280p290-321.html
   My bibliography  Save this article

Analýza relativní přeinvestovanosti či podinvestovanosti ekonomik na panelových datech 122 zemí světa
[Analysis of Relative Over-investment and Under-investment of Economies on Panel Data for 122 Countries of the World]

Author

Listed:
  • Jiří Pour

Abstract

The aim of this paper is to evaluate relative over-investment or under-investment of economies. To achieve this, we build a panel regression for 122 countries, where rates of investment and capital-output ratios are explained by key fundamental variables stemming from the theory in Chapter 1. We present implied-equilibrium values for both variables and all the countries in the sample. Countries of the former Soviet Union, the USA and Germany, for example, were identified as relatively underinvested. Large Asian economies such as China, India and Indonesia, and some countries of Latin America and Africa appeared to be overinvested. No significant imbalance was identified for Czechia, Slovakia and Hungary, while Poland showed to be rela- tively underinvested.

Suggested Citation

  • Jiří Pour, 2020. "Analýza relativní přeinvestovanosti či podinvestovanosti ekonomik na panelových datech 122 zemí světa [Analysis of Relative Over-investment and Under-investment of Economies on Panel Data for 122 C," Politická ekonomie, Prague University of Economics and Business, vol. 2020(3), pages 290-321.
    • Handle: RePEc:prg:jnlpol:v:2020:y:2020:i:3:id:1280:p:290-321
    DOI: 10.18267/j.polek.1280
    as

    Download full text from publisher

    File URL: http://polek.vse.cz/doi/10.18267/j.polek.1280.html
    Download Restriction: free of charge
    File URL: http://polek.vse.cz/doi/10.18267/j.polek.1280.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.18267/j.polek.1280?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yashin, Pete, 2014. "The Golden Rule of Capital Accumulation and Global Recession. Aggregate Production Function and the Cambridge Capital Controversy," MPRA Paper 58570, University Library of Munich, Germany.
    2. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    3. Philippe Aghion & Peter Howitt, 2009. "The Economics of Growth," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262012634, December.
    4. Philippe Aghion & Diego Comin & Peter Howitt & Isabel Tecu, 2016. "When Does Domestic Savings Matter for Economic Growth?," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 64(3), pages 381-407, August.
    5. Mr. Il Houng Lee & Mr. Murtaza H Syed & Mr. Liu Xueyan, 2012. "Is China Over-Investing and Does it Matter?," IMF Working Papers 2012/277, International Monetary Fund.
    6. Claudio Borio & Piti Disyatat & Mikael Juselius & Phurichai Rungcharoenkitkul, 2022. "Why So Low for So Long? A Long-Term View of Real Interest Rates," International Journal of Central Banking, International Journal of Central Banking, vol. 18(3), pages 47-87, September.
    7. Ca’ Zorzi, Michele & Chudik, Alexander & Dieppe, Alistair, 2012. "Thousands of models, one story: Current account imbalances in the global economy," Journal of International Money and Finance, Elsevier, vol. 31(6), pages 1319-1338.
    8. Kei-Mu Yi & Jing Zhang, 2017. "Understanding Global Trends in Long-run Real Interest Rates," Economic Perspectives, Federal Reserve Bank of Chicago, issue 2, pages 1-20.
    9. Chang-Tai Hsieh & Peter J. Klenow, 2007. "Relative Prices and Relative Prosperity," American Economic Review, American Economic Association, vol. 97(3), pages 562-585, June.
    10. repec:zbw:bofrdp:2017_036 is not listed on IDEAS
    11. Pablo Acosta & Andrés Loza, 2005. "Short and Long Run Determinants of Private Investment in Argentina," Journal of Applied Economics, Taylor & Francis Journals, vol. 8(2), pages 389-406, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Karel Brůna & Jiří Pour, 2023. "Population aging and structural over/underinvestment," Economic Change and Restructuring, Springer, vol. 56(4), pages 2339-2383, August.
    2. Kumar, Sanjesh & Singh, Baljeet, 2019. "Barriers to the international diffusion of technological innovations," Economic Modelling, Elsevier, vol. 82(C), pages 74-86.
    3. Alessandra Cepparulo & Gilles Mourre, 2020. "How and How Much? The Growth-Friendliness of Public Spending through the Lens," European Economy - Discussion Papers 132, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    4. Sulekha Hembram & Souparna Maji & Sushil Kr. Haldar, 2019. "Club Convergence among the Major Indian States During 1982–2014: Does Investment in Human Capital Matter?," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 20(2), pages 184-204, September.
    5. Knut Blind & Florian Ramel & Charlotte Rochell, 2022. "The influence of standards and patents on long-term economic growth," The Journal of Technology Transfer, Springer, vol. 47(4), pages 979-999, August.
    6. Sebastian Strunz & Bartosz Bartkowski & Harry Schindler, 2017. "Is there a monetary growth imperative?," Chapters, in: Peter A. Victor & Brett Dolter (ed.), Handbook on Growth and Sustainability, chapter 15, pages 326-355, Edward Elgar Publishing.
    7. Philippe Aghion & Agnès Festré, 2017. "Schumpeterian growth theory, Schumpeter, and growth policy design," Journal of Evolutionary Economics, Springer, vol. 27(1), pages 25-42, January.
    8. Tsuboi, Mizuki, 2019. "Resource scarcity, technological progress, and stochastic growth," Economic Modelling, Elsevier, vol. 81(C), pages 73-88.
    9. Calistus N Ngonghala & Mateusz M Pluciński & Megan B Murray & Paul E Farmer & Christopher B Barrett & Donald C Keenan & Matthew H Bonds, 2014. "Poverty, Disease, and the Ecology of Complex Systems," PLOS Biology, Public Library of Science, vol. 12(4), pages 1-9, April.
    10. Lange, Steffen & Pütz, Peter & Kopp, Thomas, 2018. "Do Mature Economies Grow Exponentially?," Ecological Economics, Elsevier, vol. 147(C), pages 123-133.
    11. Attar, M. Aykut, 2016. "Economic Growth and Technological Progress in Turkey: An Analysis of Schumpeterian Mechanisms," MPRA Paper 73255, University Library of Munich, Germany.
    12. Jayasooriya, Sujith, 2020. "Revised Macro-Mincer Model for Human Capital Investment in Economic Growth," MPRA Paper 100747, University Library of Munich, Germany.
    13. Pierre-Richard Agénor, 2017. "Caught In The Middle? The Economics Of Middle-Income Traps," Journal of Economic Surveys, Wiley Blackwell, vol. 31(3), pages 771-791, July.
    14. Guido Cozzi & Giammario Impullitti, 2014. "Globalization, Wage Polarization, and the Unstable Great Ratio," Discussion Papers 2014/13, University of Nottingham, Centre for Finance, Credit and Macroeconomics (CFCM).
    15. Julia Bock-Schappelwein & Jürgen Janger & Andreas Reinstaller, 2012. "Bildung 2025 – Die Rolle von Bildung in der österreichischen Wirtschaft," WIFO Studies, WIFO, number 45200, April.
    16. Hatem Altaee, 2018. "Trade Openness and Economic Growth in the GCC Countries: A Panel Data Analysis Approach," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 11(3), pages 57-64, December.
    17. Tomasz Brodzicki, 2015. "Shallow determinants of growth of Polish regions. Empirical analysis with panel data methods," Collegium of Economic Analysis Annals, Warsaw School of Economics, Collegium of Economic Analysis, issue 39, pages 25-40.
    18. Jo Reynaerts & Jakob Vanschoonbeek, 2022. "The economics of state fragmentation: Assessing the economic impact of secession," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 37(1), pages 82-115, January.
    19. Naser, Hanan, 2014. "On the cointegration and causality between Oil market, Nuclear Energy Consumption, and Economic Growth: Evidence from Developed Countries," MPRA Paper 65252, University Library of Munich, Germany, revised 25 Mar 2015.
    20. repec:zbw:bofrdp:2013_001 is not listed on IDEAS
    21. Rana P. Maradana & Rudra P. Pradhan & Saurav Dash & Kunal Gaurav & Manju Jayakumar & Debaleena Chatterjee, 2017. "Does innovation promote economic growth? Evidence from European countries," Journal of Innovation and Entrepreneurship, Springer, vol. 6(1), pages 1-23, December.

    More about this item

    Keywords

    equilibrium investments; capital-output ratio; implied-equilibrium; steady state; external economic balance; panel regression;
    All these keywords.

    JEL classification:

    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E27 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Forecasting and Simulation: Models and Applications

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prg:jnlpol:v:2020:y:2020:i:3:id:1280:p:290-321. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stanislav Vojir (email available below). General contact details of provider: https://edirc.repec.org/data/uevsecz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.