Topics
Investment
An economist would define investment as the acquisition of goods that are not consumed in the current period, but are used in the future to produce other goods and services. Investment can take many forms, including the purchase of physical capital, such as machinery, equipment, new hardware and software and buildings.
Economists view investment as a key driver of economic growth, as it allows businesses and individuals to increase their productive capacity and to generate future income. Investment can also lead to technological advances and increased efficiency, as businesses may invest in new technologies and equipment in order to improve their operations.
In economic analysis, investment is typically measured as a percentage of gross domestic product (GDP). This allows economists to track changes in investment over time and to compare the level of investment in different countries or regions.
See also
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What are capital goods?
Study Notes
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The Road to Revitalising UK Investment: A £1 Trillion Challenge
6th September 2024
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Business Investment and Economic Growth
Study Notes
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UK Economy - The Borrowing for Investment Debate
9th January 2024
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4.1.4.8 Technological Change (AQA Economics)
Study Notes
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Why underinvestment is holding back the UK economy
28th September 2023
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2.2.3 Investment (Edexcel)
Study Notes
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2.2.3 Investment (Edexcel A-Level Economics Teaching PowerPoint)
Teaching PowerPoints
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4.2.2.3 Investment and the Accelerator (AQA A Level Economics Teaching Powerpoint)
Teaching PowerPoints
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UK Economy - Causes and Consequences of Low Investment
27th April 2023
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Brexit has dealt a blow to UK investment according to MPC member
14th February 2023
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Interest rates and business investment - chain of reasoning
Practice Exam Questions
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UK Economy - Why low business investment matters
11th September 2022
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UK Economy in Focus - Investment Spending
Topic Videos
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UK Economy - The UK's Investment Gap
Topic Videos
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Under-investment by British business
11th December 2016
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Aggregate Demand - Revision Presentation
Teaching PowerPoints
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Asian Infrastructure Investment Bank (AIIB)
Study Notes
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Foreign Direct Investment and Economic Development
Teaching PowerPoints
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Jaguar cars to go fully electric by 2025
16th February 2021
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Aggregate Demand - Revision Playlist
Topic Videos
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Investment and Aggregate Demand
Topic Videos
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Gross and Net Investment
Topic Videos
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Investment (Quizlet Activity)
Quizzes & Activities
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Business Confidence
Topic Videos
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Dyson leaves the electric car market
11th October 2019
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UK Economy Update 2019: Economic Growth
Topic Videos
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Capital Investment
Study Notes
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China - Economic Growth and Development
Study Notes
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Understanding the Accelerator Effect
Study Notes
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The Accelerator Effect
Topic Videos
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Mind the Gap - Transport Infrastructure
9th August 2017
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Are cash-rich companies holding back economic growth?
14th July 2017
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Beyond the Bike Lesson Resource - Shenzhen's development
23rd May 2016
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Indonesia's Infrastructure Ambitions
2nd March 2016
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The Cross Rail Project
22nd September 2014
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Do interest rates affect business investment?
17th October 2014
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Growth and Development in Ethiopia
17th October 2014
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Slowing German economy must raise investment
19th October 2014
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Foreign direct investment in Africa
14th November 2014
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Low productivity threatens UK recovery and living standards
5th April 2015
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Firms risk eating themselves argues BoE Economist
25th July 2015
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Should we take Corbynomics seriously?
20th August 2015
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Nissan invests £100m into the Sunderland plant
3rd September 2015
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Beyond the Bike lesson resources - aid and savings
8th October 2015
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Investment Ratios for Selected Countries
9th November 2015
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Aggregate demand low investment and corporate cash mountains
15th November 2015