We present evidence that an increase in investment as a share of GDP predicts a higher growth rate of output per worker … coefficients. They are robust to model specifications and estimation methods. The evidence that investment has a long-run effect on …

role of rising rates of investment. Because labor reallocation across sectors, TFP growth at the sector level and … investment are all inter-related, simple growth decompositions that are often used in the literature are not appropriate for … continues to absorb more than half of all fixed investment. If capital had been allocated efficiently, China could have achieved …

The empirical identification of non-linearities in investment relies on how investment is assumed to be separated into … investment which allows us to observe regime separation, an aspect of the data that is typically absent from previous empirical … concentrating investment in a single year. Moreover, there is evidence that investment is more sensitive to fundamentals in the high …