Version 1
: Received: 20 September 2023 / Approved: 21 September 2023 / Online: 22 September 2023 (04:29:54 CEST)
How to cite:
Busu, M.; Vargas, V.M.; Anagnoste, S. Unraveling Interdependencies: Exploring the Impact of In-vestments on Global Output Using the Leontief Matrix. Preprints2023, 2023091507. https://doi.org/10.20944/preprints202309.1507.v1
Busu, M.; Vargas, V.M.; Anagnoste, S. Unraveling Interdependencies: Exploring the Impact of In-vestments on Global Output Using the Leontief Matrix. Preprints 2023, 2023091507. https://doi.org/10.20944/preprints202309.1507.v1
Busu, M.; Vargas, V.M.; Anagnoste, S. Unraveling Interdependencies: Exploring the Impact of In-vestments on Global Output Using the Leontief Matrix. Preprints2023, 2023091507. https://doi.org/10.20944/preprints202309.1507.v1
APA Style
Busu, M., Vargas, V.M., & Anagnoste, S. (2023). Unraveling Interdependencies: Exploring the Impact of In-vestments on Global Output Using the Leontief Matrix. Preprints. https://doi.org/10.20944/preprints202309.1507.v1
Chicago/Turabian Style
Busu, M., Vanesa Madalina Vargas and Sorin Anagnoste. 2023 "Unraveling Interdependencies: Exploring the Impact of In-vestments on Global Output Using the Leontief Matrix" Preprints. https://doi.org/10.20944/preprints202309.1507.v1
Abstract
This research delves into the intricate dynamics underlying the impact of investments on global output, em-ploying the Leontief matrix as a robust analytical framework. Investments wield a profound influence on economies worldwide, with varying effects contingent upon investment types, development levels of coun-tries, and external factors such as trade conflicts and global shocks. The diverse range of investment forms, including physical capital, human capital, R&D, and technological investments, engenders distinct implica-tions for productivity, innovation, and efficiency. Developing and developed economies navigate unique tra-jectories, with investments playing a pivotal role in bridging infrastructure gaps, improving technology, and spurring growth. However, external disruptions, such as trade wars and global shocks, introduce an element of complexity, reshaping investment patterns and altering global output trajectories. This study centers on harnessing the Leontief matrix's prowess to evaluate the interplay of investments and global output, focusing on the Romanian economy. By analyzing input-output tables, encompassing 105 branches aggregated into 10 sectors, the research captures the intricate connections between economic segments. No-tably, the Romanian context reveals the volatility of the matrix coefficients', an outcome of ongoing transi-tional processes, technological advancements, and fluctuating relative prices. In unraveling the intricate threads weaving investments and global output, this study contributes to a nuanced comprehension of these multifaceted interactions. The findings underscore the significance of tailoring investment strategies to specific economic contexts and advocate for robust frameworks, such as the Leontief matrix, to inform pol-icy decisions and drive sustainable growth in an increasingly complex global economy.
Keywords
investments; global output; leontief matrix; economic impact; development levels; trade conflicts; external shocks
Subject
Business, Economics and Management, Business and Management
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
