Report
Patrick Artus

Can we compare corporate investment in volume terms between OECD countries?

When comparing, between the large OECD countries, corporate productive investment (excl. construction) in volume terms, we see a high level of productive investment in Japan and the United States and a low level of productive investment in Italy and the United Kingdom. But when looking at productive investment prices (deflators), we can see considerable differences between the countries, while the equipment invested in is more or less the same. The risk is that the methods used by national accounting systems to take into account quality effects (when taken into account they lead to a fall in the price) are very different from one country to the next. If that is the case, a comparison of investments in volume terms makes no sense , as the effects of the quality of equipment are measured in different ways between countries, and we should compare only productive investment in value terms, and particularly investment rates in value terms in relation to GDP. This comparison differs from that of productive investment in volume terms primarily in that it shows a lower investment level in the United States.
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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