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According to 2nd lecture he addresses about

the Significance of investment

What is Significance of investment


Investing ensures present and future long-term financial security. The
money generated from your investments can provide financial
security and income. One of the ways investments like stocks, bonds,
and ETFs provide income is by way of a dividend.

Development & Investment Symbiotic Relationship


Using annual data from 1960 to 2002, it conducts stationarity tests on
the variables, followed by cointegration analysis among the banking
and non-banking financial variables and GDP. It also tests for the
direction of Granger-causality. Our results show that for Bangladesh,
Sri Lanka, Brazil, Malaysia, Thailand and Turkey, this causality runs
from economic growth to financial development. Granger-causality is
bi-directional for India, Argentina, Germany, Japan, the UK and the
USA. There does not exist one-way Granger-causality from financial
development to economic development for any of the countries
examined

Investment risk
Investment risk can be defined as the probability or likelihood of
occurrence of losses relative to the expected return on any particular
investment.stating simply, it is a measure of the level of uncertainty of
achieving the returns as per the expectations of the investor. It is the
extent of unexpected results to be realized.
risk is an important component in assessment of the prospects of an
investment. Most investors while making an investment consider less
risk as favorable. The lesser the investment risk, more lucrative is the
investment. However, the thumb rule is the higher the risk, the better
the return.

A third modality for Investment

What is PPP
PPP is an economic theory that compares different countries'
currencies through a "basket of goods" approach. According to this
concept, two currencies are in equilibrium—known as the currencies
being at par—when a basket of goods is priced the same in both
countries, taking into account the exchange rates.

PPP advantages:

 Ensure the necessary investments into public sector and more effective  public resources
management;

 Ensure higher quality and timely provision of public services;

 Mostly investment projects are implemented in due terms and do not impose unforeseen
public sectors extra expenditures;

 A private entity is granted the opportunity to obtain a long-term remuneration;

 Private sector expertise and experience are utilized in PPP projects implementation;

 Appropriate PPP project risks allocation enables to reduce the risk management
expenditures;

 In many cases assets designed under PPP agreements could be classified off the public
sector balance sheet.

Problems in National Development


 Tardy economic growth in terms of G.N.P. and standard of living.
 Large scale unemployment and under-employment.

 Large pool of illiteracy.

 Rapid growth of population.

 Challenges of national and emotional integration.

Way to fix Problems of National Development

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