Investment plays a crucial role in fostering growth from "summary" of Theory of Economic Growth by W. Arthur Lewis
Investment is the engine that drives economic growth. It is through investment that new capital is created, businesses expand, and productivity increases. In the world of economics, it is widely acknowledged that investment plays a crucial role in fostering growth. Without investment, economies stagnate, and progress comes to a halt. When businesses decide to invest in new equipment, technologies, or infrastructure, they are essentially laying the groundwork for future growth. This initial investment sets off a chain reaction of economic activity, creating jobs, raising incomes, and ultimately leading to higher levels of consumption and production. In this way, investment acts as a catalyst for economic development. Moreover, investment not only spurs growth in the short term but also has long-lasting effects on the economy. By in...
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