EVALUATION METHOD OF THE RELATION BETWEEN THE INVESTMENT IN TECHNOLOGY AND THE ECONOMIC CHANGE

Abstract

Economists argue that investment stimulates economic growth. Investment in technology as one of the investment components should also stimulate economics of the countries. But the real relation between the investment in technology and the changes in macro-economic indicators is not deeply analysed. The main purpose of the paper is to create the model for evaluation of the relation between the investment in technology and the economic change. The literature analysis shows that different neoclassical models could be used for different kind of evaluation of the relation between investment in technology and the macro-economic growth. Besides, a theoretical method is created to evaluate how the various investments in technology influence the economic growth. The method consists of five main research goals: to evaluate the trends of investment in technology and economic indicators; to evaluate the influence of external factors on the economic change; to evaluate the influence of internal country’s resources on the economic change; to assess the opportunities to catch up with advanced countries by investing in technology; to assess the country's ability to influence economic growth by investing in technology. Different research results and benefits could be received depending on the chosen goal.DOI: http://dx.doi.org/10.5755/j01.em.18.2.3978