The Relationship Between Growth and Investment
AbstractThis 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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Bibliographic InfoPaper provided by EconWPA in its series Macroeconomics with number 0511014.
Length: 15 pages
Date of creation: 11 Nov 2005
Date of revision:
Note: Type of Document - pdf; pages: 15
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Web page: http://220.127.116.11
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:
- NEP-ALL-2005-11-19 (All new papers)
- NEP-FDG-2005-11-19 (Financial Development & Growth)
- NEP-MAC-2005-11-19 (Macroeconomics)
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