Perché la produttività degli investimenti varia tra paesi? (Why does the productivity of investment vary across countries?)

Moneta e Credito. 2017;70(279):197-231


Journal Homepage

Journal Title: Moneta e Credito

ISSN: 0026-9611 (Print); 2037-3651 (Online)

Publisher: Associazione Economia civile

Society/Institution: Associazione Economia civile

LCC Subject Category: Social Sciences: Finance | Social Sciences: Economic theory. Demography

Country of publisher: Italy

Language of fulltext: Italian

Full-text formats available: PDF



Kevin S. Nell
A.P. Thirlwall


Double blind peer review

Editorial Board

Instructions for authors

Time From Submission to Publication: 20 weeks


Abstract | Full Text

In ‘new growth theory’ equations that include the investment ratio, all other variables included are determinants of the productivity of investment. We convert a ‘new growth theory’ equation into a productivity of investment equation by dividing the equation through by the investment ratio. We take a sample of 84 developed and developing countries over the period 1980 to 2011, and examine the importance of 19 potential variables that might affect the productivity of investment, using a general-to-specific model selection algorithm. Education, export growth, macroeconomic stability, political rights, geography and government expenditure turn out to be the most important determinants. There is no evidence of diminishing returns to investment, so that investment matters for long run growth.