Economics, Econometrics and Finance
8 years ago

China's booming rate of return fuels investment drive, reshaping economy.

Journal of Asian Economics
China's investment and rate of return on capital revisited
Ya Tang, Jianguo Xu, Xun Zhang

Paper Summary

Related papers

Theme background image
Social Sciences
3 years ago

New method maximizes real return on investment in private pension funds!

Socio-Economic Development
Regional Competitiveness
1 view
Economics, Econometrics and Finance
5 years ago

New Rate of Return Metrics Revolutionize Investment Evaluation Beyond IRR Limitations.

Real Options
Value-based Management
2 views
Economics, Econometrics and Finance
8 years ago

Outdated investment appraisal methods fail to accurately predict project success.

Real Options

China's rate of return on capital was studied to understand their investment patterns. Conflicting methods were reconciled, showing a sharp rise in the rate of return from 1998 to 2014. This increase was mainly due to rising total factor productivity in the long term, with low real interest rates also playing a role.