Investment and growth interrelations transformation (by the example of Slovakia)

Economic Annals-ХХI: Volume 137, Issue 1-2(1), Pages: 46-49

Citation information:
Vidova, J. (2014). Investment and growth interrelations transformation (by the example of Slovakia). Economic Annals-XXI, 1-2(1), 46-49. https://ea21journal.world/index.php/ea-v137-12/

Jarmila Vidova
PhD (Economics),
Department of Economic Policy,
Faculty of National Economy,
University of Economics in Bratislava
1 Dolnozemska cesta, Bratislava, 852 35, Slovak Republic
vidova@dec.euba.sk

Investment and growth interrelations transformation (by the example of Slovakia)

Abstract. Investments in general are that part of the gross domestic product of a country, which is consumed during its creation, but is saved to be invested in the economy effectively and deliver a reasonable profit. It is undeniable that through investment economic growth could be affected. In the past, our economic theory and practice closely understood the investment only as cash for reproduction of fixed capital. Although investments in fixed capital remain the most important form of investment, but their understanding of the new conditions extended to other forms.

The new concept includes investment funds inserted into the current capital stock to inputs and semi-finished products. Large area is invested in securities, such equities, and bonds. The new concept of investment are also important areas of production, circulation and consumption, i.e. investment process is understood and the development of material and technical base of education, health and other sectors so tertiary sector, but also a reproduction of the material-technical base of social (government) consumption. Finally, the investment process applies in the state budget. In recent decades, the policy applies deficits in the state budget, in which spending is covered by state government bonds, which the state must pay interest and after some time they redeem, which means that the budget deficit is covered investments. The aim of science is the issue of state investment, the theoretical results. Attention focuses on the analysis of the investment process in the Slovak economy through indicator of gross fixed capital formation and examines the dependencies between its creation and economic growth.

Keywords: Gross Fixed Capital; Investments; Economy Growth; Development of Gross Fixed Capital Formation; Net Rate of Investments; Gross Rate of Investments

JEL Classification: B22; E22; O11; P23

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Received 16.10.2013