that this will lead to a dynamic factor model with the dominant unit acting as the factor. The problems of estimation and … documented by Monte Carlo experiments. An empirical application to modelling of real GDP growth and investment-output ratios … dominant effects are found. The results also suggest that increase in investment as a share of GDP predict higher growth rate …

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

Carlo experiments, where we also study the estimation of the aggregate effects of micro and macro shocks. The paper …

. Using foreign direct investment (FDI) as a measure for capital flows, we present empirical evidence which largely confirms … thereby fosters economic growth. We apply a structural estimation approach to fully track the endogenous mechanisms of the …

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 …