IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-3-031-34386-5_7.html
   My bibliography  Save this book chapter

The Effects of the Internal Rate of Return on Economic Development: A Country-Level Study

In: Driving Complexity in Economic Development

Author

Listed:
  • Diego Gomez

    (Fundación ECSIM)

  • Sebastian Aparicio

    (Universitat Autònoma de Barcelona
    Universitat Autònoma de Barcelona)

  • David Urbano

    (Universitat Autònoma de Barcelona
    Universitat Autònoma de Barcelona)

  • Diego Martinez-Moya

    (Fundación ECSIM)

Abstract

Investment decision variables such as internal rate of return (IRR) and return on equity (ROE) are crucial for correct decision-making in firms. However, given the difficulty of creating an IRR or ROE variable at the country level, the literature studying the effect of these variables on macroeconomics such as economic growth is almost non-existent. Thus, this chapter uses the country-level IRR variable from the Penn World Table version 10.0 and creates an approximate country-level ROE variable to study this relationship using a three-stage method, in which the first stage shows the determinants of country risk on IRR and ROE.

Suggested Citation

  • Diego Gomez & Sebastian Aparicio & David Urbano & Diego Martinez-Moya, 2023. "The Effects of the Internal Rate of Return on Economic Development: A Country-Level Study," Springer Books, in: Diego Gomez & Sebastian Aparicio & David Urbano (ed.), Driving Complexity in Economic Development, chapter 7, pages 197-228, Springer.
    • Handle: RePEc:spr:sprchp:978-3-031-34386-5_7
    DOI: 10.1007/978-3-031-34386-5_7
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    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:spr:sprchp:978-3-031-34386-5_7. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.