Vladimir ŠIMIĆ
Associate professor, University of Split, Faculty of Economics, Business and Tourism, Split, Croatia and CERGE-EI Teaching Fellow
vsimic@efst.hr
Lena MALEŠEVIĆ PEROVIĆ
Full professor, University of Split, Faculty of Economics, Business and Tourism, Split, Croatia and CERGE-EI Teaching Fellow
lena@efst.hr
Abstract
Whilst investment in both theoretical and empirical literature stands out as one of the most prominent determinants of growth, evidence on the importance of different types of investment for growth appears to be missing. This paper aims at filling this gap. The paper, thus, primarily contributes to the empirical literature by investigating the effects of different types of investment on growth in a group of EU-10 economies covering the period from 1995 to 2019. The panel data analysis provides some important and interesting findings. While overall investment is found to be strongly significant and positive, being in accordance with previous studies, the results provide new insights into the importance of different types of investment for growth. Not all types of investment affect growth (positively and significantly), thus sending also important message that it matters in which activities investment goes.
Keywords: Type of investment, Growth, EU-10 countries
JEL classification: E22, O4, O47
pp. 105-115