Definition Capital accumulation

the definition of capital accumulation subject controversy , ambiguities, because refer to:

a net addition existing wealth
a redistribution of wealth.

most often, capital accumulation involves both net addition , redistribution of wealth, may raise question of benefits most. if more wealth produced there before, society becomes richer; total stock of wealth increases. if accumulate capital @ expense of others, wealth merely shifted b. possible accumulate capital faster others. in principle, possible few people or organisations accumulate capital , grow richer, although total stock of wealth of society decreases.

in economics , accounting capital accumulation equated investment of profit income or savings, in real capital goods. concentration , centralisation of capital 2 of results of such accumulation (see below).

capital accumulation refers ordinarily to:

real investment in tangible means of production, such acquisitions, research , development, etc. can increase capital flow.
investment in financial assets represented on paper, yielding profit, interest, rent, royalties, fees or capital gains.
investment in non-productive physical assets such residential real estate or works of art appreciate in value.

and extension to:

human capital , i.e., new education , training increasing skills of (potential) labour force can increase earnings work.
social capital , i.e. wealth , productive capacity people in society hold in common, rather individuals or corporations.
etc.

both non-financial , financial capital accumulation needed economic growth, since additional production requires additional funds enlarge scale of production. smarter , more productive organization of production can increase production without increased capital. capital can created without increased investment inventions or improved organization increase productivity, discoveries of new assets (oil, gold, minerals, etc.), sale of property, etc.

in modern macroeconomics , econometrics term capital formation used in preference accumulation , though united nations conference on trade , development (unctad) refers nowadays accumulation . term used in national accounts.

the measurement of accumulation

accumulation can measured monetary value of investments, amount of income reinvested, or change in value of assets owned (the increase in value of capital stock). using company balance sheets, tax data , direct surveys basis, government statisticians estimate total investments , assets purpose of national accounts, national balance of payments , flow of funds statistics. reserve banks , treasury provide interpretations , analysis of data. standard indicators include capital formation, gross fixed capital formation, fixed capital, household asset wealth, , foreign direct investment.

organisations such international monetary fund, unctad, world bank group, oecd, , bank international settlements used national investment data estimate world trends. bureau of economic analysis, eurostat , japan statistical office provide data on usa, europe , japan respectively.

other useful sources of investment information business magazines such fortune, forbes, economist, business week, etc., , various corporate watchdog organisations , non-governmental organization publications. reputable scientific journal review of income & wealth. in case of usa, analytical perspectives document (an annex yearly budget) provides useful wealth , capital estimates applying whole country.