Investment Models and FDI

-In economic theory and macroeconomics investment refers to expenditure over goods, which are used for future production rather than present consumption.

-Examples of investment include expenditure on plant, machinery, equipments, expenditure on infrastructure such as power plants, irrigation dams, rail road or factory construction.

-Besides this, investment may be done in human capital in order to improve the capacity of labour force through better education, training, health and nutrition.

-Investment in human capital includes costs of additional schooling or on-the-job training. Inventory investment is the accumulation of goods inventories, which may be positive or negative, and it can be intended or unintended.


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