Accelerated depreciation and investment-driven growth: a Marx-Okishio approach

Chong Liu (), Bangxi Li () and Jim Huangnan Shen ()
Additional contact information
Chong Liu: University of Cambridge
Bangxi Li: Tsinghua University, Tsinghua University
Jim Huangnan Shen: Fudan University, Fudan University

Evolutionary and Institutional Economics Review, 2025, vol. 22, issue 1, No 13, 211 pages

Abstract: Abstract Accelerated depreciation of fixed assets is a representative tax reduction policy. While existing empirical studies have primarily focused on the micro perspective, there is a lack of literature systematically quantifying its macro-level economic impact. Based on Marxist political economy and drawing on Okishio’s theory of accumulation, we propose an analysis framework integrating the reproduction of fixed capital into the overall reproduction of aggregate social capital. This study aims to examine whether, and to what extent, accelerated depreciation can promote economic growth, using China’s input-output data from 1981 to 2020. The findings reveal that accelerated depreciation positively impacts economic growth, primarily driven by new investments. This impact becomes more significant as the depreciation period shortens. However, it is essential to note that shortening the depreciation period also leads to a negative adjustment effect due to increased costs. Theoretical implications for policymaking need a systematic perspective on the role of accelerated depreciation and investment-driven growth.

Keywords: Accelerated depreciation; Fixed capital; Investment-driven growth; Marx-Okishio approach (search for similar items in EconPapers)
JEL-codes: B51 E62 L60 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s40844-025-00301-w Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:eaiere:v:22:y:2025:i:1:d:10.1007_s40844-025-00301-w

Ordering information: This journal article can be ordered from
https://www.springer ... theory/journal/40844

DOI: 10.1007/s40844-025-00301-w

Access Statistics for this article

Evolutionary and Institutional Economics Review is currently edited by Kiichiro Yagi, Yuji Aruka and Takahiro Fujimoto

More articles in Evolutionary and Institutional Economics Review from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().