Capital investment

Definition

Capital investment refers to the expenditure made by businesses or governments on long-term assets like machinery, equipment, buildings, or infrastructure with the aim of increasing production capacity or improving efficiency.

Related terms

Physical capital: Physical capital refers to the tangible assets used in production, such as machinery, tools, or buildings.

Human capital: Human capital represents the skills, knowledge, and expertise of individuals that contribute to economic productivity.

Infrastructure: Infrastructure includes the basic physical structures and facilities needed for an economy to function efficiently, like roads, bridges, and power grids.