Investment Pattern of Employed Persons in Kanyakumari District

Abstract

According to Keynes only investment can influence the level of output, income & employment in an economy. Investment in macro economic analysis refer to the value of the part of aggregate output which is used for the creation of new structures, new capital equipment and changes in business inventories. The value of this output is measured by the amount of expenditure incurred on these items.

Thus it is important that a new capital asset must come into existence by the aggregate amount of investment. For example the purchase of shares and bonds of a company by an individual from another individual may be an individual but simply a paper transfer because no new asset is created in the society. But shares and debenture purchased by individuals direct from the company that would more likely purchase or construct different assets for productive purposes like building machinery & plant etc., will be investment in the sense macro economic analysis. Investment must generate income in the economy. Income generated economy un-constructing or acquiring these capital assets may be known as the value investment.