THE IMPACT OF INVESTMENT ON LONG-TERM ECONOMIC DEVELOPMENT

Abstract

This study examines the impact of investment on long-term economic development by analyzing its role in capital accumulation, productivity growth, and structural transformation. Using a theoretical-empirical approach, the research evaluates how different types of investment—public, private, and foreign direct investment (FDI)—contribute to sustainable economic growth. The findings indicate that investment significantly enhances economic output by expanding production capacity and improving efficiency. Public investment in infrastructure creates a foundation for economic activity, while private investment drives innovation and employment. Foreign direct investment facilitates technology transfer and integration into global markets. The study also highlights the importance of human capital and innovation investment in achieving long-term development. However, the effectiveness of investment depends on its allocation efficiency, institutional quality, and macroeconomic stability. The results suggest that well-designed investment policies are essential for achieving sustainable and inclusive economic growth.