IDEAS home Printed from https://ideas.repec.org/a/diw/diwdeb/2016-15-1.html
   My bibliography  Save this article

Weak Corporate Investment Requires Immediate Action

Author

Listed:
  • Marcel Fratzscher
  • Martin Gornig
  • Alexander Schiersch

Abstract

Although the federal government has been taking steps to strengthen investment in Germany, it remains considerably low. This includes private investment, on which thepresent study focuses. German companies are barely investing more than they did before the crisis, but this is not the case elsewhere: in the US, for example, the level of investment is nearly 14 percent higher than it was in 2007. One year ago, the Experts Commission “Strengthening Investment in Germany,” presented a plan comprising concrete recommendations for mitigating or even eliminating Germany’s investment weakness. The report contained proposals for increasing public investment, as well as measures for strengthening private investment. Since then, however, far too little progress has been made in the four primary fields of action for private investment identified by the Experts Commission (digital networks, energy infrastructure, innovations, and young enterprises). The need for action remains high; among other measures, tax incentives for investment could help.

Suggested Citation

  • Marcel Fratzscher & Martin Gornig & Alexander Schiersch, 2016. "Weak Corporate Investment Requires Immediate Action," DIW Economic Bulletin, DIW Berlin, German Institute for Economic Research, vol. 6(15), pages 167-171.
    • Handle: RePEc:diw:diwdeb:2016-15-1
    as

    Download full text from publisher

    File URL: https://www.diw.de/documents/publikationen/73/diw_01.c.531566.de/diw_econ_bull_2016-15-1.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bursian, Dirk & Goldbach, Stefan & Jochem, Axel & Nagengast, Arne & Schön, Matthias & Stähler, Nikolai & Vetlov, Igor, 2020. "A model-based analysis of the German current account surplus," Technical Papers 03/2020, Deutsche Bundesbank.

    More about this item

    Keywords

    investment; private sector; expert commission; capital stock;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures

    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:diw:diwdeb:2016-15-1. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Bibliothek (email available below). General contact details of provider: https://edirc.repec.org/data/diwbede.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.