Saving Investment Equilibrium and Development

Saving Investment Equilibrium and Development

Development And Capital Stock

For the developing countries, development can be defined as; increasing capital stock. In fact, in addition to the capital stock; technology, existence of enterpreneurs, quality of human capital, natural sources and political, religious, cultural and geographical factors are also effective on development. Economical development means; increasing the life standards of a country. These standards comprises income, consumption, saving, education, health, quality food and water. At this point; evaluations are made by ‘Human Development Index’  which is broadcasted by the United Nations. 

Financing sources can be combined in two main captions as internal and external. Internal financial sources are the savings in a country.  In developing countries, the insufficency of the internal savings affects capital stock negatively. In such circumstances, increasing capital stock with the internal sources is going to be possible with increasing savings. Besides, increasing savings requires decreasing consumption or increasing income. Instead of traditional saving habits; taking inspirer precautions in order to raise savings to economy, banking system and capital market, would be more beneficial. 

Saving Investment Equilibrium

Saving, is the difference between income and consumption. Investment, is spending savings to the yielding production capacities. If savings are more than investments in a country, this means that there is an oversaving. If savings are equal to investments in a country, then this is going to mean that there is a saving and investment equilibrium. In such circumstances, there is no need for countries to get into dept. But, if savings are lower than investments, then saving import from abroad is required. This case which is mentioned below, is critically important because of the fact that the saving and investment equilibrium have a deficit. And in such a circumstance; countries are going to get into dept from abroad no doubtly. 

Turkey is such an economy that has a saving deficit and imports saving from abroad. The saving deficit of a country can be closed in two ways; 

1.Attracting the foreign capital,

2.Foreign indeptment

Turkey, mostly closes its’ saving deficit with foreign indeptment because of the fact that; it can not attract the foreign capital. From now on, Turkey should grow and develop without needing external financing sources. Growing and developing are not going to be possible without increasing domestic savings. The contributions of every segment of the society, are going to affect the welfare level of our country directly. 

Saving means; saving money and reducing in daily language. They are important in national economics. The saving types are investment tools for the countries. 

Placement is passing investment into other hands. This is not an additional investment, it is just changing investors. 

Çamlı Feed Animal Husbandry Co. which is the agricultural group of Yaşar Holding, has contributed to the national economy with its’ sectoral investments, productions and qualified human resources. It converts savings into investments and increase its’ production with the increases in technology and capacity. As our Honorary President Selçuk Yaşar lays emphasis on ‘Knowledge, Cooperation, Success’ , we are going to continue to make investment and production by raising healthy generations. 

Süleyman Güler
Health Tasarruf Eğitim Education Gelir Sağlık Development And Capital Stock Su Income Water Sermaye Birikimi Ekonomik Kalkınma Yiyecek İç Finansman Yatırım Dengesi Yatırım Denkliği Food Economical Development Internal Financing Investment Balance Investment Equilibrium

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