Investment and Economic Growth

  • Carlos Encinas-Ferrer
  • Eddie Villegas-Zermeño
Conference paper
Part of the Springer Proceedings in Business and Economics book series (SPBE)


The variable gross investment or gross fixed capital formation is composed of two elements: the investment for replacement of the fixed capital consumed and new physical capital investment or net fixed capital formation. The latter is supposed to be the investment that allows the growth of productive capacity and, therefore, of economic growth in the medium and long term.

In this paper, we perform a statistical and econometric study of the variables mentioned to know their trends and determine if there is indeed a causal relationship between the net fixed capital formation and economic growth, the former being the independent variable.

We conducted our analysis on three countries: the USA, the Republic of Korea, and Brazil.


Gross national income Adjusted net national income Gross fixed capital formation Fixed capital consumption Net fixed capital formation Economic growth 


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  5. World Bank, Data, Country. Consulted for USA, Rep. of Korea and Brazil from April to May 2017.

Copyright information

© Springer International Publishing AG, part of Springer Nature 2018

Authors and Affiliations

  • Carlos Encinas-Ferrer
    • 1
  • Eddie Villegas-Zermeño
    • 2
  1. 1.Universidad del Valle de Atemajac Campus LeónLeónMexico
  2. 2.Departamento de Ciencias Económico AdministrativasUniversidad Iberoamericana LeónLeónMexico

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