Link between Tangible Investment Rate and Labour Productivity in the European Manufacturing Industry

Alina Stundziene () and Asta Baliute ()

Panoeconomicus, 2022, vol. 69, issue 4, 609-633

Abstract: This paper analyses the link between the tangible investment rate and apparent labour productivity in the European manufacturing industry. The research results show a negative and opposite relation between apparent labour productivity and investment rate, that is, changes in apparent labour productivity cause changes in investment in tangible assets but not vice versa. The findings do not show any significant differences among European countries when the relation between apparent labour productivity and investment rate is analysed. However, when analysing the gross investment in tangible goods, as well as in machinery and equipment, period effects are observed. A crisis and economic slowdown reduce investment in tangible capital. Meanwhile, the growth of the economy spurs more investment. The negative correlation between apparent labour productivity and investment rate indicates that investment in tangible assets is ineffective. An analysis on individual countries is required in order to reach more nuanced conclusions. Keywords: Labour productivity, Investment rate, Tangible investment, Manufacturing industry. JEL: D24, D92, J24, L60.

Keywords: Labour productivity; Investment rate; Tangible investment; Manufacturing industry (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
https://panoeconomicus.org/index.php/jorunal/article/view/1557/743 (application/pdf)

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:voj:journl:v:69:y:2022:i:4:p:609-633:id:1557

Access Statistics for this article

Panoeconomicus is currently edited by Kosta Josifidis

More articles in Panoeconomicus from Savez ekonomista Vojvodine, Novi Sad, Serbia
Bibliographic data for series maintained by Savez ekonomista Vojvodine, Novi Sad, Serbia ().