What Is an Autonomous Investment?

Independent investment refers internationally to investments that are not restricted by existing economic conditions such as national income and consumption levels. The invention of new products and new production technologies is the main factor that causes independent investment. Investments caused by social, political and psychological factors are also considered to be autonomous investments. For example, the U.S. investment in the Western Railroad in the 19th century was autonomous. The invention of new technologies, new products and new materials into production has significant economic benefits. Such investments are encouraged in China, but they must be included in national plans and approved. [1]

Independent investment

Right!
Independent investment refers internationally to investments that are not restricted by existing economic conditions such as national income and consumption levels. The invention of new products and new production technologies is the main factor that causes independent investment. Investments caused by social, political and psychological factors are also considered to be autonomous investments. For example, the U.S. investment in the Western Railroad in the 19th century was autonomous. The invention of new technologies, new products and new materials into production has significant economic benefits. Such investments are encouraged in China, but they must be included in national plans and approved. [1]
Chinese name
Independent investment
nickname
Spontaneous investment
Features
Not affected by national income levels
major force
New products and new production technologies
The amount of investment even when the interest rate r is zero.
The invention of new products and new production technologies is a major force in promoting spontaneous investment. Investment caused by social, psychological, and political factors is also called spontaneous investment. In the real economy, examples of spontaneous investment are investments that directly reflect technological inventions at the government investment level. In western economics income-expenditure models, spontaneous investment is also considered as an established exogenous variable.

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