THE ROLE OF CAPITAL GOODS IN INVESTMENT AND ECONOMIC GROWTH

Capital goods are assets used in the production of goods and services over time. Investment in these goods increases an economy’s productive capacity and has a direct impact on productivity and quality, reducing production costs and improving competitiveness. However, investment in capital goods alone is not enough. It is necessary to create a favorable economic environment, including appropriate fiscal and monetary policies, effective regulation, and education and research and development systems that promote innovation and entrepreneurship. Adequate financing for investment in capital goods is also crucial for sustainable economic growth.