The impact of Investments in fixed assets on the Gross Domestic Product

Session

Management, Business and Economics

Description

Gross Domestic Product (GDP) is the basis of any national economy. It perceives the economic activity and the development of countries and their position in the world market as one of the most important macroeconomic factors, it presents a summary of all goods and services produced over a year in a national economy. Due to its broad significance, our research aims to examine the factors affecting its size in order to be able to predict and control it and to increase the positive influence and neutralize the negative impact. For this purpose, we have included investments in fixed assets as a factor which we are investigating in our research. In addition to their impact on the Gross Domestic Product, we have examined whether there is a correlation between variations in the observed phenomenon and its intensity. It should be noted that due to the complexity of economic phenomena, the impact of our reviewed factor is linked to the simultaneous impact of many other equally important factors on the size and growth of our gross domestic product. The analysis includes the time period from 2011-2016, where liner regression has been used as the basis for the analysis of this research. As far as data are concerned, there is a strong positive correlation between these two variables.

Keywords:

Gross Domestic Product (GDP), Investments in fixed assets, Linear regression

Session Chair

Ylber Limani

Session Co-Chair

Arta Mulliqi

Proceedings Editor

Edmond Hajrizi

ISBN

978-9951-437-69-1

Location

Pristina, Kosovo

Start Date

27-10-2018 10:45 AM

End Date

27-10-2018 12:15 PM

DOI

10.33107/ubt-ic.2018.317

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Oct 27th, 10:45 AM Oct 27th, 12:15 PM

The impact of Investments in fixed assets on the Gross Domestic Product

Pristina, Kosovo

Gross Domestic Product (GDP) is the basis of any national economy. It perceives the economic activity and the development of countries and their position in the world market as one of the most important macroeconomic factors, it presents a summary of all goods and services produced over a year in a national economy. Due to its broad significance, our research aims to examine the factors affecting its size in order to be able to predict and control it and to increase the positive influence and neutralize the negative impact. For this purpose, we have included investments in fixed assets as a factor which we are investigating in our research. In addition to their impact on the Gross Domestic Product, we have examined whether there is a correlation between variations in the observed phenomenon and its intensity. It should be noted that due to the complexity of economic phenomena, the impact of our reviewed factor is linked to the simultaneous impact of many other equally important factors on the size and growth of our gross domestic product. The analysis includes the time period from 2011-2016, where liner regression has been used as the basis for the analysis of this research. As far as data are concerned, there is a strong positive correlation between these two variables.