Econometric Model for Assessing Minimum and Maximum Thresholds of Investments

The contribution argues that when investments directed to the sectors of material production of the country’s national economy are less than a certain minimum threshold, then there is no impact of investments on income growth. In addition, when investments directed to material production sectors exceed a certain maximum threshold, then the impact of investments exceeding the maximum threshold on income growth is absent. The author proposes a methodology for assessing criteria for the minimum and maximum thresholds of investments directed to the production sector of the national economy. The work also proposes a methodology for assessing the rational (optimal) level of investment directed to the production sectors of the national economy, ensuring maximum income growth. Based on statistical data from the State Statistics Committee of Azerbaijan for 2015–2021, the minimum, maximum and rational levels of investment were calculated. The ineffective volumes of investments below the minimum threshold and above the maximum threshold of investments directed into the sphere of material production of Azerbaijan during the period under study were calculated. The sphere of material production of Azerbaijan during the period under study was considered.