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    ICOR

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    Nguyen Anh Tuan
    The document discusses the Incremental Capital-Output Ratio (ICOR), which is a ratio that measures the investment needed to generate one unit of economic growth. A higher ICOR means capital is used less efficiently. The ICOR can be thought of as a measure of inefficiency in how capital is used. It is calculated by dividing investment as a percentage of GDP by the GDP growth rate.

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    ICOR

    Uploaded by

    Nguyen Anh Tuan
    29 views2 pages
    The document discusses the Incremental Capital-Output Ratio (ICOR), which is a ratio that measures the investment needed to generate one unit of economic growth. A higher ICOR means capital is used less efficiently. The ICOR can be thought of as a measure of inefficiency in how capital is used. It is calculated by dividing investment as a percentage of GDP by the GDP growth rate.

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    The document discusses the Incremental Capital-Output Ratio (ICOR), which is a ratio that measures the investment needed to generate one unit of economic growth. A higher ICOR means capital is used less efficiently. The ICOR can be thought of as a measure of inefficiency in how capital is used. It is calculated by dividing investment as a percentage of GDP by the GDP growth rate.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    29 views2 pages

    ICOR

    Uploaded by

    Nguyen Anh Tuan
    The document discusses the Incremental Capital-Output Ratio (ICOR), which is a ratio that measures the investment needed to generate one unit of economic growth. A higher ICOR means capital is used less efficiently. The ICOR can be thought of as a measure of inefficiency in how capital is used. It is calculated by dividing investment as a percentage of GDP by the GDP growth rate.

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    The Incremental Capital-Output Ratio (ICOR), is the ratio of investment to growth which is equal to 1 divided by the marginal product

    of capital. The higher the ICOR, the lower the productivity of capital. The ICOR can be thought of as a measure of the inefficiency with which capital is used.

    K: capital stock Y: output (GDP) I: net investment According to this formula the incremental capital output ration can be computed by dividing the investment share in GDP by the rate of growth of GDP. ICOR Vit Nam

    References: http://en.wikipedia.org/wiki/Incremental_Capital-Output_Ratio http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/EASTASIAPACIFICEXT/VIETNAMEXTN/0,,men uPK:387571~pagePK:141159~piPK:141110~theSitePK:387565,00.html

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