The rate of investment, rate of growth and the aggregate efficiency of fixed capital

Between investment volume, product and aggregate fixed capital exist the certain quantitative relations which results from depreciation of fixed capital and structural changes in economy. The certain extent of capital in economy makes possible to reach a certain extent of product and this fact determines a certain extent of investment. On the other side the same extent of capital needs a certain extent of investment to replace the loss of capital because of depreciation.<p> The high rate of investment can be an expression of unequilibrium between both types of investment. This unequilibrium is the result of a low effectiveness of agregate fixed capital in economy (as a consequence of weak demand, high degree of depreciation of capital, unsuitable structure of investment in previous years etc.). That means that the high rate of investment needn´t be an essential contribution to acceleration of economic growth in the middle-term horizon. On the contrary it can signal an unsufficient effectiveness of aggregate fixed capital as a result of high rate of depreciation (and low effectiveness) of capital and structural problems in fixed capital reproduction. A high year-to-year dynamics of investment in the middle-term horizon does not guarantee a high rate growth in this time horizon. In transitive economy (as is the case of the Czech economy) this conclusion is valid twice.