The traditional boundaries between labor and capital are becoming blurred.

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

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

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.

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

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

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

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

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

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.

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.

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

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.

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.

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.

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

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.)

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

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

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.

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.

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

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.

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.

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.

The current economic growth model considers the configuration of key factors of production land, labor, capital, and total factor productivity (a measure of efficiency).

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

First, eurozone countries must implement reforms aimed at boosting wage and price flexibility through enhanced competition and improved labor and capital mobility within and between member countries.

Second, the growth differential between emerging and advanced countries will widen, which will in turn intensify flows of capital and skilled labor towards the developing world.

The first change concerns China s pattern of economic growth, which so far has been achieved mostly by rapidly increasing factor inputs labor, capital, and energy.

China wants to shift from low value added, labor intensive industries such as textiles to higher value added sectors such as electronics and capital goods.

Prompted by capital flows to low wage countries, specialization, outsourcing, and even immigration, the equilibrium price of unskilled labor has fallen throughout the western countries.

The first concerns the pattern of Chinese economic growth, which so far has been achieved mainly by rapid increases in factor inputs labor, capital, and energy.

The reason is not that the periphery offers an attractive labor force from which capital profits, but rather that the core especially the United States offers a form of protection for capital against unanticipated political disturbances.

Concurrent with diminishing labor income, government imposed ceilings on bank deposits the primary savings vehicle for most households have held down household capital income.

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

Believers in low interest rates also emphasize shifts in income distribution in the United States away from labor and toward capital, which have greatly boosted firms' resources to finance investment internally and reduced their dependence on capital markets. They point to rapid technological progress, which has boosted output from new and old capital investments.

By this, he meant an open economy that ensures the free flow of goods, labor, and capital, together with a disciplined central fiscal authority and a strong central bank.

Standard growth theory predicts convergence of per capita GDP a fast growing country will eventually encounter difficulty maintaining high rates of labor mobilization, capital accumulation, and technological progress.