Sustained economic growth requires, everywhere, the accumulation of physical and human capital, as well as the acquisition of technological capabilities.

By 2012, human capital s contribution to China s GDP growth fell almost to zero, with fixed capital accumulation accounting for roughly 60 of total growth.

With current and capital account surpluses, the renminbi s exchange rate is still under upward pressure.

Government educates and invests, increasing the supply and reducing the premium earned by skilled workers, and lowering the rate of return on physical capital.

As the accumulation and deepening of capital accelerate growth, they perpetuate the low efficiency investment pattern and stimulate overproduction.

In many developing countries, IPAs do not pay adequate attention to the potential for attracting FDI that could contribute to knowledge accumulation but focus rather on capital accumulation in tangible assets.

Indeed, while China s overall capital stock is by no means small, capital structure and maturity mismatches have led to the accumulation of massive volumes of non performing assets, undermining China s economic stability and financial efficiency.

In the long run, trade's positive influence comes through the utilization and upgrading of productive capacities, innovation and accumulation of physical, human and organizational capital.

While that growth pattern is fragile, if physical capital formation is insufficient, the economies of Egypt and Jordan are expected to expand further in 2005.

On the supply side of the economy, the state can invest or coinvest with the private sector in physical capital (infrastructure), institutions, human capital, and the knowledge and technology underpinnings of the economy.

The latter regions have more than substituted for the decline in natural capital by accumulating other capital assets.

But in any discussion of the forces governing the process of capital accumulation, the manner in which the richest stratum of society acquires and uses its income appears to be of particular significance.

Accordingly, there is a need for a development policy that focuses on reconstruction, builds up physical and human capital for development and emphasizes institutional modernization for greater efficiency.

Initial capital

As above, firm value is enhanced when, and if, the return on capital exceeds the cost of capital.

In a growth mechanism where the external oil windfall component weakens, the internal component, which is dependent on higher productivity, technology and an adequate articulation between physical and human capital, would be best employed in offsetting the fall in oil rents.

The Art of Capital Flight

Damming Capital

The Capital Flow Conundrum

Capital flows and remittances

E. Financial capital and resilience

The portion of capital inflows that is not re exported represents net capital inflows.

For example, demand for investment goods may rebound, especially in certain hard hit sectors, after a recession has caused physical capital to become technologically obsolete.

Similarly, sustainable, long term capital flows, particularly greenfield FDI, are primarily attracted to countries that have already achieved rapid economic growth and steady improvements in human and physical infrastructure Thus, for those with a robust investment dynamic in both physical and human capital, trade and FDI can reinforce an established virtuous growth circle.

Abolishing the NEP, it was the first of a number of plans aimed at swift accumulation of capital resources through the buildup of heavy industry, the collectivization of agriculture, and the restricted manufacture of consumer goods.

That said, in the interplay of linkages making up a virtuous growth regime, capital accumulation seems to provide one important link from launching an industrial take off to sustaining catch up growth.

The Siren Song of Capital Controls

Investment and private flows

(o) Working Capital Fund

Brazil has been aggressive in terms of capital restrictions, twice increasing its tax on financial inflows.

In any meaningful international comparison, China s per capita stock of physical capital is still 8 10 times lower than in advanced countries like the United States and Japan.

Recent work has tended to stress the developmental dimension of remittance flows, highlighting its role in developing human capital through education and, to a lesser extent, physical investment in farms or housing.

To stop this accumulation of foreign exchange reserves, and thus minimize China s welfare and capital losses, the simplest solution would be for the PBOC to call a halt to intervention.

व श व क प ज क र ख फ र ट यर क ओर

Jacqueline Novogratz on patient capitalism

The reason lies in capital movements.

Finally, there is the path of public capital.

Surviving the Great Capital Flood

Raising capital is expensive.

The Temptation of China s Capital Account

List of tables

Before World War II, venture capital investments (originally known as development capital ) were primarily the domain of wealthy individuals and families.

This is why equity capital held by financial institutions typically is more than twice as expensive as debt capital and why these institutions try to minimize its use.

India can continue to thrive if it invests in physical and human capital and pursues prudent fiscal and monetary policies.

This approach, which secures growth and cuts unemployment without raising the deficit, is needed to energize the private sector and mobilize some of the capital that has accumulated on corporate balance sheets in recent years.