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The Relationship Between Growth and Investment

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Author Info
B Bhaskara Rao (University of the South Pacific)

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Abstract

This paper utilizes the growth accounting framework to derive and analyze the relationship between the rate of growth of output and the ratio of investment to output. With plausible parametric assumptions this framework is used to examine the recent controversy in Fiji on investment and growth. Our results support the concerns of some USP economists that a 5% growth rate for Fiji needs significantly higher investment rates and institutional reforms.

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File URL: http://129.3.20.41/eps/mac/papers/0511/0511014.pdf
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Publisher Info
Paper provided by EconWPA in its series Macroeconomics with number 0511014.

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Length: 15 pages
Date of creation: 11 Nov 2005
Date of revision:
Handle: RePEc:wpa:wuwpma:0511014

Note: Type of Document - pdf; pages: 15
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Web page: http://129.3.20.41

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Related research
Keywords: Investment ratio; Growth targets; Growth accounting; Total Factor Productivity.;

Find related papers by JEL classification:
E - Macroeconomics and Monetary Economics

This paper has been announced in the following NEP Reports:

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