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

Diego Gomez, Sebastian Aparicio, David Urbano and Diego Martinez-Moya
Additional contact information
Diego Gomez: Fundación ECSIM
David Urbano: Universitat Autònoma de Barcelona
Diego Martinez-Moya: Fundación ECSIM

Chapter 7 in Driving Complexity in Economic Development, 2023, pp 197-228 from Springer

Abstract: 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.

Keywords: Internal rate of return; Return on equity; GDP; Country risk (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:sprchp:978-3-031-34386-5_7

Ordering information: This item can be ordered from
http://www.springer.com/9783031343865

DOI: 10.1007/978-3-031-34386-5_7

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().