Investment refers to the process that countries, enterprises and individuals sign agreements with each other for the specific purpose of promoting social development, realizing mutual benefit and transferring funds.

Borrowing refers to the funds borrowed by enterprises from banks and other financial institutions and other units, including credit loans, mortgage loans and trust loans. Borrowing can also refer to the funds borrowed by a person from financial institutions such as banks and other units and individuals, including credit loans, mortgage loans and trust loans.

2. Capital flows are different.

Investment is capital outflow, and lending is capital inflow.

3. Different forms

Loans are divided into long-term loans and short-term loans. Long-term loans refer to loans borrowed by enterprises from banks or other financial institutions with a term of more than one year (excluding one year). The long-term loans of joint-stock enterprises in China are mainly long-term loans borrowed from financial institutions, such as loans obtained from professional banks and commercial banks; In addition, it also includes funds borrowed from finance companies, investment companies and other financial enterprises.

Investment can be divided into physical investment, capital investment and securities investment. The former is to use money to invest in enterprises and obtain certain profits through production and business activities, while the latter is to use money to buy stocks and corporate bonds issued by enterprises and indirectly participate in the profit distribution of enterprises.

Extended data

The role of investment:

1, the impact of investment on economic growth

Investment is closely related to economic growth. In the economic theory circle, both the West and China have similar views, that is, economic growth is mainly determined by investment, and investment is the basic driving force and necessary premise of economic growth. The influence of investment on economic growth can be analyzed from two aspects: factor input and resource allocation.

2. Investment is the main factor to promote technological progress.

Investment has a great influence on technological progress. On the one hand, investment is the carrier of technological progress, and the application of any technological achievements must be reflected through some investment activities, which is the link between technology and economy; On the other hand, technology itself is also an investment structure, and any technological achievement is the product of investing certain human capital and resources (such as test equipment, etc.). ). The emergence and application of technological progress cannot be separated from investment.

References:

Baidu encyclopedia: borrowing

Baidu Encyclopedia: Investment