autonomous investment

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Autonomous Investment

All investment in a country or region independent of GDP growth. Examples include government investment, inventory replacements, and other investments that must be made for the economy to continue to function, even in times of reduced or negative growth. Autonomous investment contrasts with induced investment, which is discretionary.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

autonomous investment

that part of real INVESTMENT that is independent of the level of, and changes in, NATIONAL INCOME. Autonomous investment is mainly dependent on competitive factors such as plant modernization by businesses in order to cut costs or to take advantages of a new invention. See INDUCED INVESTMENT, INVESTMENT SCHEDULE.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
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