The change in a country's stock of capital goods is indicated by its net

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The change in a country's stock of capital goods is best indicated by its net investment. Net investment measures the difference between a country's investment in capital goods (such as factories, machines, and technology) and the depreciation of existing capital goods. If a country is investing more in new capital goods than its existing capital goods are depreciating, its net investment will be positive and it is increasing its stock of capital. On the other hand, if a country's investment in new capital goods is less than its existing capital goods are depreciating, its net investment will be negative and it is decreasing its stock of capital.

The Change in a Country's Stock of Capital Goods Is