THE EFFECT OF CAPITAL EXPENDITURE IN THE FORM OF FIXED ASSETS ON ECONOMIC GROWTH IN THE REPUBLIC OF SERBIA

Since the middle of the last century, expert and research studies around the world have been measuring the impact of capital expenditures in the form of investments on economic growth and development. Investments are the basic tool for the business functionality, the national economy, and the profits creation. Capital expenditures can be of different types, as well as investments, and one of the basic forms of investment for economic growth, especially for developing countries, is investment in fixed assets. Therefore, this paper analyzes the impact of investments in fixed assets on the economic growth of Serbia, using regression modeling for the period 2004-2021. The results show that the impact of investments in fixed assets on GDP is positive, but not statistically significant yet.