Almost all economists lay emphasis on capital formation as the major determinant of economic growth. It means that society does not apply the whole of its current productive activity to the needs and desires of immediate consumption, but directs a part of it to the making of capital goods: tools and instruments, machines and transport facilities, plant and equipment, all the various forms of real capital that can so greatly increase the efficacy of productive effort. The essence of the process then, is the diversion of a part of society’s currently available resources to the purpose of increasing the stock of capital goods so as to make possible an expansion of consumable output in the future. Read the rest of this entry »
|
|
Capital Formation and Economic Development
Related posts
Industrialization and Economic Development
Industrialization is the process of manufacturing consumer goods and capital goods and of creating social overhead capital in order to provide goods and services to both individuals and businesses. As such industrialization plays a major role in the economic development of LDCs (Less Developed Country).
Industrialization is a pre-requisite for economic development as the history of advanced countries shows. For development, the share of the industrial sector should rise and that of the agricultural sector decline. This is only possible through a policy of deliberate industrialization. As a result, the benefits of industrialization will “trickle down” to the other sectors of the economy in the form of the development of agricultural and service sectors leading to the rise in employment, output and income. Read the rest of this entry »
Related posts
Incubator Centers For Economic Development – New Business Model
Over the past few months, I’ve been working with a small team to come up with the perfect solution to provide jobs, economic development and keep the US on the leading edge of future technologies. We or I should say I, wrote up a quick business plan and gave it to our team to discuss. The incubator center would have multiple spaces for garage style innovators and home grown inventors inside of a large industrial building or aircraft hangar.
One interesting question which came up was; “If you lease facilities what type of businesses would be allowed?” The answer is mostly clean tech, as they are most likely to get funded. Each would be evaluated, some obviously are not possible, such as those which require clean rooms, although Phase V would have such a possible system based on the same basic plan; much more costly. Not interested in Hazmat type stuff due to dangers to other participants, although that could be possible for a future Phase V which could include; NanoTech, Military, etc. program. Read the rest of this entry »
Tags: Economic Development