Article Impact of Income on Gross Fixed Capital Formation in Pakistan An Analysis for the Period 2008-17
Keywords:
Income, Gross Fixed Capital Formation, Pakistan etcAbstract
Investment in the developing countries differs from the investment in the
developed countries in the sense of credit availability and government
investment. The investment depends upon the infrastructure and
characteristics of the economy of the country too. It is correlated with
macroeconomic factors as GDP, interest rate offered to the investors and
the government policy for attracting investment, inflation and income. The
phenomena of profit that capital investment yields has been a matter of
discussion, investigation and analysis by many financial and economy
gurus over the past century. The main aim of encouraging investment to a
country is to bring prosperity to it. This state of affairs can be materialized
by engaging people into business activities that yield them a better
economic status, improved life style and creation of business opportunities
where the people can invest their savings. This signifies the fact that
growth in economy of a country is an open manifestation of its progress
and prosperity. The investment and the economy in general are
fundamentally inter related and impact one another greatly. The
macroeconomic factors in estimating speculations of resources are
recognized to be crucial in this respect. Changes in macroeconomic
factors do influence investment and capital formation in one way or
another. Correct future estimations regarding patterns found in
macroeconomic factors can be useful in order to see their main effect on
investment.
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