Investment Ratio and Growth

B. Bhaskara Rao ()

Macroeconomics from EconWPA

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.

Keywords: Investment ratio; Growth targets; Growth accounting; Total Factor Productivity; Neo classical growth model. (search for similar items in EconPapers)
JEL-codes: E (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac
Date: 2005-10-02
Note: Type of Document - pdf; pages: 8
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpma:0510003

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