Investment Management Based On Key Investment Growth Spurts

Abstract

Abstract Among key factors that are perceived as crucial to the investment development within an economic system is sectoral composition. It is essential to identify those types of economic activity that define the makeup of the investment-related links between associated sectors. Based on the sector approach to investment and demand, this article looks at how the investment self-induction mechanism influences intersectoral investment dynamics. Among the outcomes of our study we is a method for identifying, based on output-input account data, key investment growth spurts. The method we suggest has been applied to the analysis of the U.S. industries’ performance. The main hypothesis we explore builds on the idea that the investment growth spurts may shortly after they have been given ample impetus launch what we call a mechanism of self-induction of investment, while also spurring the investment development within adjacent sectors of economy. The presented theoretical assumptions are backed up with empirical outcomes. In our study we made use of the data released by the US Department of Commerce. The conclusions we arrived at enable identification of the industries which, if enhanced through self-induction of investment mechanism, may generate a desired increase in the investment flows within adjacent economic sectors.