Basic question:
If investment increases, growth should increase too.
But concepts like ICOR suggest efficiency matters — if capital isn’t used efficiently, higher investment won’t translate into proportional output.
So is the real constraint in many economies not capital, but how effectively it’s used?
Why doesn’t higher investment always lead to higher growth?
byu/ayush_insight ineconomy
Posted by ayush_insight
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**For a detailed explanation, I’ve written a longer article here:** [**https://medium.com/@sweetayushsingh7538/more-investment-less-growth-the-icor-reality-explained-e834400bbf70**](https://medium.com/@sweetayushsingh7538/more-investment-less-growth-the-icor-reality-explained-e834400bbf70)