Investments and Economic
Development
Economic investment categories
can be defined in various ways. Yet it is
the most domesticated definition of the
term in which the investment in the
broadest sense of the word mean
investment in fixed and revolving funds.
Therefore we can say that the
investments represent that part of the
social product (in the expression of the
social product or national income) that
are in the process of its final allocation
and use has not spent (in terms of
individual, general and collective
consumption),
but it is used for
replacement of worn and shabby and to
build new capacity (Equal, 2005). If the
term investments understands not only
the investment for replacement of worn
and disposed and to build new capacity
but also an investment for the
maintenance of the existing potential,
this means that the concept of investment
involved and the activity of the socalled. Investment maintenance. In this
case, the concept of depreciation must
adjust this setting, which means that the
total depreciation fund parts of the part
that goes to capital maintenance and part
of that is spent for the replacement of
worn-out and disposed of fixed assets.
Such a definition of the term investments
was accepted and implemented in
practice our applied economic analysis
and planning until 1957. In the middle of
this year, our official statistics
abandoned that concept on investments
and accepted the concept that they
recommend economists methodologists
from the United Nations and accepted by
most of the member countries.
