The Spillover Effects of Investment, Economic Growth and Electricity Consumption: An Application Mathematical Dynamic Industry-Related Models Approach

Cheng-Yih Hong, Yu-Shuang Yen, Tsai-Rong Lee

Abstract


The economic growth pattern of investment has been proved in Asian countries, but it often falls into development bottleneck after the economy develops to a certain extent, especially in countries with lack of resources. One of the important reasons is the supply of energy and electricity. Establishing a sustainable development path requires thinking about economic development and environmental protection at the same time. This will face how to establish a balanced industrial structure and a stable electricity supply system, and investment in production equipment and R&D will be an indispensable factor. R & D investment and equipment investment contribute to economic growth. This study employs a dynamic industry-related model to estimate the economic spillover effect from both R&D investment and equipment investment. The present study attempts to measure (1) the difference in the investment multiplier of R&D investment and equipment investment, (2) the difference in the employment creation effect of investment R&D and equipment investment. Analysis of future industrial development strategies needs to consider energy and electricity consumption. This study will estimate (3) the impact of equipment investment and R&D investment on power consumption, and compare the differences between the two on the industry. This study uses mathematical dynamic industry-related models to estimate (1) ~ (3) and found that different investment methods will make the inter-industry economy have different spillover effects, and also show different demand in power consumption.

Keywords: R&D investment; equipment investment; dynamic industry-related model; electricity consumption

JEL Classifications: C60;O30;Q43;Q56

DOI: https://doi.org/10.32479/ijeep.7584


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