nep-fdg 2005-11-19 papers

on Financial Development and Growth

Issue of 2005‒11‒19
one paper chosen by

The Relationship Between Growth and Investment By B Bhaskara Rao

The Relationship Between Growth and Investment

By:	B Bhaskara Rao (University of the South Pacific)
Abstract:	This paper utilizes the growth accounting framework to derive and analyze the relationship between the rate of growth of output and the ratio of investment to output. With plausible parametric assumptions this framework is used to examine the recent controversy in Fiji on investment and growth. Our results support the concerns of some USP economists that a 5% growth rate for Fiji needs significantly higher investment rates and institutional reforms.
Keywords:	Investment ratio, Growth targets, Growth accounting, Total Factor Productivity.
JEL:	E
Date:	2005–11–11
URL:	http://d.repec.org/n?u=RePEc:wpa:wuwpma:0511014&r=fdg

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