So a country where labor productivity is low will become an attractive location for foreign direct investment, and the resulting increase in the capital labor ratio will raise productivity.

Because of the capital utilization effect, the capital labor ratio would not, in fact, decline, and hence there would be no significant effect on the marginal productivity of hours worked.

Some fear that extending the workday will not produce more jobs because the resulting expansion of hours worked will reduce the capital labor ratio.

That said, the ratio of capital formation does require careful monitoring.

The traditional boundaries between labor and capital are becoming blurred.

As capital is globalized, so basic labor standards should be global.

Now the substitution of capital for labor is moving beyond manufacturing.

Muted wage growth increases competitiveness, and underutilized labor and capital are redeployed.

As a result, these labor intensive sectors must release a lot of labor and capital, which push into the capital intensive export sectors that are better able to cope with high wages.

Moreover, there must be greater balance between capital intensive and labor intensive activities.

As a result, its economic model spawned a labor saving, capital intensive growth dynamic.

Second, the early success of China infrastructure was built on cheap land, capital, and labor.

The share of income going to capital has been rising, at the expense of labor.

Moreover, most of the observed growth was generated by capital rather than labor intensive sectors.

The single market principle was supposed to promote the efficient allocation of capital and labor.

Capital labor substitution is at the heart of modern productivity strategies for manufacturing based economies.

This is reflected in the current investment ratio for real capital assets of 43 of GDP, compared to 4.3 investment in human capital in the form of education.

Also driving China s high investment rate is the declining efficiency of investment capital, reflected in China s high incremental capital output ratio (annual investment divided by annual output growth).

As China s demographic dividend disappears, its low end labor market is shrinking, driving up its once rock bottom labor costs and diminishing its rate of return on capital.

More fundamentally, creating the regulatory institutions conducive to ownership separation may be impossible unless a society's political orientation towards labor and capital is more favorable to capital.

While the manufacturing approach served China well for 30 years, its dependence on capital intensive, labor saving productivity enhancement makes it incapable of absorbing the country s massive labor surplus.

China could usefully explore shifting part of the burden from labor toward property, capital gains, and inheritance taxes.

The SOEs compete in product and labor markets with the private sector, but less so in capital markets.

A larger capital stock would mean thicker markets, a finer division of labor, and a more productive economy.

The growth of potential GDP will reflect the structural rise of the labor force, the increase in the capital stock, and the improvement in multifactor productivity (i.e., the change in the output that results from improvements in technology rather than from increases in labor and capital.)

Regarding the banking sector, stress tests have been applied since 2004, and a target capital adequacy ratio of 12 has been maintained since 2006.

Nor has it liberalized labor and product markets, and it maintains strict control over the exchange rate and capital account.

That means that China is beginning to rejoin the human race as capital accumulation meets scarcer labor and growth slows.

Economic growth is determined not only by factors of production such as labor, capital, and technology, but also by institutional arrangements.

But encouraging labor intensive industries, which create jobs for the poor, must not be at the expense of capital intensive industries.

The ever freer and faster flow of capital, labor, goods, and ideas found in the EU a model and a forerunner.

First, capital requirements should be set as a straightforward ratio of common equity to total assets, thereby abandoning all reference to banks own risk management models.

They calculated that 75 to 80 of economic growth did not come from increasing the capital output ratio at least not if the private marginal product of capital was taken as an indicator of the social marginal product.

The free movement of goods, labor, and capital between the two parts could have given a tremendous economic boost to Palestinian GDP.

Likewise, labor market reform, improved education, and enhanced human capital could contribute an additional 4 to GDP growth in the next decade.

Shifts in the distribution of income away from labor and toward capital, which have boosted corporate profits as a share of production.

Today, capital in the developed world is abundant the saving ratio declines as people consume more and production shifts increasingly to services, where productivity gains are limited.

Overall pressure ratio is 28.0, with a bypass ratio of 4.66.

Overall pressure ratio is 30.4, with a bypass ratio of 5.15.

A larger capital stock would mean thicker markets, a finer division of labor, and a more productive economy. A highly productive society based on a sophisticated division of labor was how you secured the wealth of nations.

Liquidity injections and low interest rates have a microeconomic effect that has received little attention they lower the cost of capital vis à vis the cost of labor, which causes a relative decline in demand for labor.

(c) As the balance of payments deteriorated, especially after interruptions of capital inflows and sometimes massive flights of capital, the national currency was sharply devalued. This sharp devaluation increased further the cost of debt servicing and the debt to GDP ratio.

Early high growth economies Japan, South Korea, Taiwan initially exported labor intensive products, then graduated to more capital intensive goods like motor vehicles, and then to human capital intensive activities like design and technology development.

Aspect ratio

Aspect ratio