Measuring Modern Business Investment: A Case Study for Germany
External Publication 18. May 2020 Michael Grömling in World Economics Journal Measuring Modern Business Investment: A Case Study for Germany
An extended concept for intangible investment does not lead to additional investment momentum in the case of Germany. This corresponds to experiences with former extension of investments in national accounts.
Michael Grömling in World Economics Journal German Economic Institute (IW)
An extended concept for intangible investment does not lead to additional investment momentum in the case of Germany. This corresponds to experiences with former extension of investments in national accounts.
Also, growth in real GDP and the related labour productivity dynamics are not higher when a broader definition of investment in the form of intangibles is applied. Even if the investment processes are defined beyond the measurement concept for intangibles established by Corrado, Hulten and Sichel, there are no fundamentally different findings for German investment dynamics based on a special company survey. However, these findings should not be misunderstood as suggesting there is no need for action in terms of statistical measurement. Extended concepts and estimates signal for Germany considerable level effects of a more broadly defined investment concept.
IW-Trends No. 2 11. July 2026 Hubertus Bardt et al.
Why Do Companies Invest in Germany?
The growth of Germany’s capital stock is slowing, as current investment increasingly fails to keep pacewith steadily rising disposals. In particular, private investment – which accounts for well over fourfifths of total gross fixed capital formation – has been alarmingly low in recent years.
Hubertus Bardt / Michael Grömling / Thomas Schleiermacher / Susanne Seyda IW
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