Rapid economic growth and improving living standards have benefited almost all regions of the world since the industrial revolution africa stands out as one regional exception while several factors such as civil wars and rampant corruption have been associated with poor economic performance of the african region in the. Development of a nation without the availability of adequate capital either in the form of physical capital or in the form of human capital is not possible the higher the rate of capital formation (physical as well as human), the faster is the pace of economic growth on the other hand, deficiency of capital has. Capital formation and economic growth for a society's economy to grow long term, it is essential to increase the capacity for producing goods and services capital accumulation provides the money businesses need to expand their activities and thus contribute to overall economic growth for example, capital. The role of capital formation in economic growth is possibly the leading area of controversy in development theory a major landmark has been solow's 1957 article 1 in which he showed that technical change, and not capital formation, constituted the leading factor in american twentieth-century economic growth solow's. This paper examines the effect of gross capital formation on the economic growth of the cemac sub- region it draws inspiration from the endogenous growth model data for the study is collected from the world bank development indicators the estimation technique used for this study is the generalized least square. This present paper captures the growth effects of public physical and human capital investment, which highlights the relative efficacy of these types of invest.
Capital formation and economic growth in china gregory c chow first, production functions are estimated for china's aggregate economy and for the five sectors-agriculture, industry, construction, transportation, and com - merce-using annual data (some constructed by the author) from 1952 to 1980. There is widely accepted concept in economic theory that human capital plays positive role in determining national income formation or accumulation of human capital and economic development for human welfare are the major targets of economic policy of each country this study investigates the casual. This paper examines the causal relationship between capital formation and economic growth in sub-saharan african countries using recent panel cointegration and causality testing techniques we find that causality is bi- directional, suggesting that higher economic growth leads to higher capital formation. Abstract the paper highlights the role of education in the growth of economic competitiveness and efficiency of human capital, in accordance with the quality of education and investments in human resources, in order to enhance labour productiveness the paper starts by a brief analysis of romania's educational system,.
Technical progress, capital formation, and economic growth robert m solow the american economic review, vol 52, no 2, papers and proceedings of the seventy-fourth annual meeting of the american economic association (may, 1962) 76-86 stable url. In case, there is deficiency of capital assets such as machinery equipment tools, dams roads, railways, bridges, etc, etc, the country then remains trapped in the vicious circle of poverty capital accumulation/formation, thus, in brief is at the vary core of economic development it may here be remembered that though capital.
1 capital formation and economic growth in china gregory c chow i introduction the economic development strategy of the people' s republic of china during the three decades beginning in the early 1950s is characterized by a high rate of capital accumulation at the expense of consumption and the. Downloadable there is widely accepted concept in economic theory that human capital plays positive role in determining national income formation or accumulation of human capital and economic development for human welfare are the major targets of economic policy of each country this study investigates the casual.
For further information contact the uow library: [email protected] publication details this article was originally published as verma, r, wilson, e and pahlavani, m, the role of capital formation and saving in promoting economic growth in iran, middle east business and economic review, june 2007, 19(1),. The introduction of the on the dynamic relationship among economic growth, import and export from the theories of international trade since the study of adam s et al , it has been argued that, trade plays an important role in national wealth of the nations (capital formation) furthermore, trade increases specialization in.