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Investment Ratio and Growth

Author

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  • B Bhaskara Rao

    (University of the South Pacific)

Abstract

In growth and development policy investment ratio is an important policy instrument. However, there is no well defined framework to determine what should be the investment ratio for a given growth target. This paper explains the potential of Solow (1956) and Solow (1957) to explain the relationship between the target growth rate and investment ratio. Hypothetical data are used for illustration.

Suggested Citation

  • B Bhaskara Rao, 2005. "Investment Ratio and Growth," Macroeconomics 0510003, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpma:0510003
    Note: Type of Document - pdf; pages: 8
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/mac/papers/0510/0510003.pdf
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    References listed on IDEAS

    as
    1. Ryuzo Sato, 1963. "Fiscal Policy in a Neo-Classical Growth Model: An Analysis of Time Required for Equilibrating Adjustment," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 30(1), pages 16-23.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Investment ratio; Growth targets; Growth accounting; Total Factor Productivity; Neo classical growth model.;
    All these keywords.

    JEL classification:

    • E - Macroeconomics and Monetary Economics

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