Profitability, investment and capital productivity

Charles-Henri DiMaria

MPRA Paper from University Library of Munich, Germany

Abstract: Capital accumulation is pivotal to produce goods and services. Common knowledge is that entrepreneurs invest because of potential profit. However, the various theoretical frameworks as well as empirical studies are not providing unequivocal evidence of direct causality between profit and investment decisions. In this document we use Granger symetric causality test as well as asymmetric causality test first proposed by (Hatemi-J, 2012). We examine possible causality between profit and investment, profit and unit labour cost and between investment and productivity.

Keywords: Capital productivity; rate of profit; asymmetric causality test (search for similar items in EconPapers)
JEL-codes: E22 O47 (search for similar items in EconPapers)
Date: 2023-07-21
New Economics Papers: this item is included in nep-cse and nep-eff
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:118640

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