Department of Economics, Texas Tech University, Lubbock, 79401,TX, U.S.A
This paper examines how private sector investment boosts the American economy. Here we use time series data collected from the U.S. government publishing office to understand the relationship between GDP and corporate investment, how corporate is investing its profit after a contribution to tax payments and how private domestic investment is dispensed into residential and non-residential industrial fields. We mostly focus on a corporate business cycle and selected manufactures. Corporate would invest their profits into structure, equipment, and intellectual properties. This paper takes a close look at how investment by corporates enters the economy and promote productivity. By such analysis, we answer issues on corporate behaviour, its contributions to the society and how it would retain its profits or reinvest its profits into every aspect of both its own business cycle and the society in general. We answer questions such as to what extent, investment would influence GDP, how much are corporates willing to invest their after-tax profits into manufactures, fixed investments and general social welfare promotion and study their investment-dispensing behaviour. Afterall, we concluded that Corporate America has a balanced industry chain that maintains the well-being of American people. However, we notice a lack of manufacturing capital investments and employment in manufacturing sector. Compared to labour, capital is the driver that directly related to the economic growth as well as the increase of stock index.
Corporate America, Infrastructure, Public Finance, Econometrics
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