TY  - JOUR
AU  - Blomstrom,Magnus
AU  - Lipsey,Robert E.
AU  - Zejan,Mario
TI  - Is Fixed Investment the Key to Economic Growth?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 4436
PY  - 1996
Y2  - July 1996
UR  - http://www.nber.org/papers/w4436
L1  - http://www.nber.org/papers/w4436.pdf
N1  - Author contact info:
Magnus Blomstrom
European Institute of Japanese Studies
Stockholm School of Economics
Post Office Box 6501, Sveavagen 65
S-113 83 Stockholm
 SWEDEN
Tel: 46-8-7369265
Fax: 46-8-313017
E-Mail: magnus.blomstrom@gmail.com

Robert E. Lipsey
NBER
365 Fifth Avenue, Suite 5318
New York, NY 10016-4309
Tel: 212/817-7961
Fax: 212/817-1597
E-Mail: N/A user is deceased

Mario Zejan
AB  - This paper examines shares of fixed capital formation in GOP and rates of economic growth for more than 100 countries over successive 5-year periods between 1965 and 1985 to determine the direction of causality between them. Simple regressions and multiple regressions including several standard determinants of growth, as well as a simple causality test, provide more evidence that increases in growth precede rises in rates of capital formation than that increases in capital formation precede increases in growth. High rates of fixed capital formation accompany rapid growth in per capita income, but we find no evidence that fixed investment is the only or main source of ignition for economic growth.
ER  -