Capital accumulation

Capital accumulation also termed the accumulation of capital is a dynamic that motivates the pursuit of profit, involving the investment of money or all financial asset with the goal of increasing the initial monetary value of said asset as a financial return if in the gain of profit, rent, interest, royalties or capital gains. The aim of capital accumulation is to hold new fixed and works capitals, broaden as well as modernize the existing ones, grow the fabric basis of social-cultural activities, as well as constituting the necessary resource for reserve and insurance. The process of capital accumulation forms the basis of capitalism, and is one of the established characteristics of a capitalist economic system.

Definition

The definition of capital accumulation is intended to controversy and ambiguities, because it could refer to:

Most often, capital accumulation involves both a net addition and a ] When one person is enriched at the expense of another in circumstances that the law sees as unjust this is the called ]

In economics and accounting, capital accumulation is often equated with investment of profit income or savings, particularly in real capital goods. The concentration and centralisation of capital are two of the results of such(a) accumulation see below.

Capital accumulation mentioned ordinarily to:

and by address to:

Both non-financial and financial capital accumulation is normally needed for economic growth, since additional production commonly requires additional funds to enlarge the scale of production. Smarter and more productive organization of production can also include production without increased capital. Capital can be created without increased investment by inventions or improved agency that put productivity, discoveries of new assets oil, gold, minerals, etc., the sale of property, etc.

In contemporary macroeconomics and econometrics the term capital formation is often used in preference to "accumulation", though the United Nations Conference on Trade and Development UNCTAD refers nowadays to "accumulation". The term is occasionally used in national accounts.

Accumulation can be measured as the monetary utility of investments, the amount of income that is reinvested, or as the conform in the value of assets owned the increase in the return of the capital stock. Using company balance sheets, tax data and direct surveys as a basis, government statisticians estimate or done as a reaction to a question investments and assets for the intention of national accounts, national balance of payments and flow of funds statistics. Usually, the reserve banks and the Treasury supply interpretations and analysis of this data. requirements indicators include capital formation, gross fixed capital formation, fixed capital, household asset wealth, and foreign direct investment.

Organisations such(a) as the International Monetary Fund, UNCTAD, the World Bank Group, the OECD, and the Bank for International Settlements used national investment data to estimate world trends. The Bureau of Economic Analysis, Eurostat and the Japan Statistical Office administer data on the US, Europe and Japan respectively.

Other useful dominance of investment information are companies magazines such as Fortune, Forbes, The Economist, Business Week, etc., and various corporate "watchdog" organisations and non-governmental organization publications. A reputable scientific journal is the Review of Income and Wealth. In the case of the US, the "Analytical Perspectives" document an annex to the yearly budget gives useful wealth and capital estimates applying to the whole country.