What is the meaning of investment in economics, and what is the difference between it and investment in the literal sense?

In economics, investment refers to the purchase (and thus production) of capital goods. Capital goods, which can also be regarded as capital in economics, mainly refer to a kind of stored wealth or a manufacturing model. It is an item that will not be consumed but will be used in future production. For example, an enterprise increases an inventory, builds a house and buys a computer. Life investment refers to physical investment and financial investment, including both physical investment (purchase of factory buildings, equipment, houses and patents) and financial investment (purchase of stocks, bonds, futures and futures).

Investment in macroeconomics refers to the increase or replacement of material capital stock, which is actually the formation process of transforming resource elements into capital. Specifically, it includes fixed assets investment and inventory investment. Investment in fixed assets includes "three rooms and one equipment", namely, new factory buildings, new houses, new commercial buildings and new machinery and equipment. It should be noted that behaviors such as buying stocks and bonds are called "speculation" in economics and "investment" in finance.

Impact of investment

1, the impact of investment on economic growth

Investment is closely related to economic growth. In the economic theory circle, both the West and China have similar views, that is, economic growth is mainly determined by investment, and investment is the basic driving force and necessary premise of economic growth. The influence of investment on economic growth can be analyzed from two aspects: factor input and resource allocation.

2. Investment is the main factor to promote technological progress.

Investment has a great influence on technological progress. On the one hand, investment is the carrier of technological progress, and the application of any technological achievements must be reflected through some investment activities, which is the link between technology and economy; On the other hand, technology itself is also an investment structure, and any technological achievement is the product of investing certain human capital and resources (such as test equipment, etc.). ). The emergence and application of technological progress cannot be separated from investment.