Because investment is so low, net capital exports from Germany are nearly 4 of GDP.

At the same time, since returns to capital are kept low by high wages, very little investment occurs. The excess of savings over investment flows abroad as capital exports.

When countries suffer from low investment demand, freeing up capital inflows does not do much good.

The country s investment rate now stands at more than 50 a clear reflection of China s low capital efficiency.

As the accumulation and deepening of capital accelerate growth, they perpetuate the low efficiency investment pattern and stimulate overproduction.

C. Investment and capital flows

The good news is that growing discipline seems to be pushing out low return investment. And there is every reason to believe that investment will remain high as the economy s capital base expands.

All call for substantial capital investment.

First, they were trapped in a vicious circle of low income, low savings and low investment, leading to low productivity and low growth.

Capital tax differences among countries would induce capital to flow from the high tax to the low tax economies. Such tax induced distortions would lead to an inefficient regional allocation of investment and possible tax competition.

One of the most daunting challenges for poor countries is the need to accumulate investment capital under conditions of low savings without incurring too much foreign debt.

Less investment will mean less capital deepening.

Also driving China s high investment rate is the declining efficiency of investment capital, reflected in China s high incremental capital output ratio (annual investment divided by annual output growth).

So a country where labor productivity is low will become an attractive location for foreign direct investment, and the resulting increase in the capital labor ratio will raise productivity.

Additional investments in capital goods offer very low returns.

Morocco boasts solid infrastructure, a robust banking system, sound public finances, low inflation, and manageable unemployment. Despite capital flight from much of the region, foreign investment continues to flow in.

Globalization has strengthened the ability of capital to flow to wherever investment promises the highest returns likewise, competitive manufactured products from low wage economies will flow in the other direction.

This requires increased investment in innovation and human capital.

In earlier times, growth was fueled by capital scarcity capital investment attracted a high rate of return, and this created a virtuous circle of saving and investment.

They generate more investment in human capital health and education.

This is reflected in the current investment ratio for real capital assets of 43 of GDP, compared to 4.3 investment in human capital in the form of education.

Low investment and a deteriorating primary education system? Not to worry.

The world also faces a serious investment problem, which the low cost of capital has done virtually nothing to overcome. Public sector investment is now below the level needed to sustain robust growth, owing to its insufficient contribution to aggregate demand and productivity gains.

Higher transactions taxes increase the cost of capital, ultimately lowering investment.

One might thus think that returns to capital are low in China.

Keeping interest rates low discouraged capital inflows and encouraged asset price inflation.

Unsurprisingly, investment in renewable energy has fallen to a four year low.

Believers in low interest rates also emphasize shifts in income distribution in the United States away from labor and toward capital, which have greatly boosted firms' resources to finance investment internally and reduced their dependence on capital markets. They point to rapid technological progress, which has boosted output from new and old capital investments.

As a result, still more sources of working and investment capital are disrupted, amplifying the impact of domestic capital flight.

And equity capital requirements for large, systemically important financial institutions remain too low.

Although high growth requires large scale capital formation, the relation between investment in real capital assets and human capital in China seems to be out of proportion.

Rather than holding an investment in our bodies, we re all at risk of becoming capital my body, but somebody else s capital.

It supports the development of the microenterprise and small scale business sector by providing working capital and capital investment loan products.

Public investment must be matched with private capital to accelerate these grids deployment

Cuba supported investment that created infrastructure and contributed capital, market and technology elements.

Owners of private capital that could be allocated to productive investment will remain hesitant.

Private domestic capital formation is the largest source of new investment in developing communities.

As long as interest rates remain low, there is no downward pressure on public investment.

More fully integrated capital markets, to provide project capital and investment funds, are required in order to improve the whole infrastructure of the region.

A tax cut to low income individuals or increased unemployment benefits would have provided far more stimulus to consumption, just as a temporary investment tax credit would have boosted capital spending far more than reducing taxes on dividends did.

The excess of national saving over investment not only permits Japan to be a capital exporter, but also contributes along with the mild deflation that Japan continues to experience to the low level of Japanese long term interest rates.

Property or capital gains taxes could help curb demand for housing as an investment vehicle.

Yet they command less than 10 of the capital available for investment in new enterprises.

Whereas inward investment reached 20 billion in 2008, capital outflows totaled 20 billion in 2009.

Thus, the important thing was not to nationalize the capital stock, but to socialize investment.