How much capital is required to produce one unit of output is termed as capital output ratio or COR. It helps to assess relationship between investment pumped in economy and resultant growth in GDP. If the capital output ratio is higher, it means that production of outputs isn’t efficient and there is need for policy […]
Understanding capital formation process holds water as capital fuels the economic growth and improves living standards. Capital formation is a process that includes cultivating savings habits of portion of income, mobilization of such saving from all possible means. And, thoughtful planning to invest in the productive activities to power economic growth. So, generating capital by
The basic difference between economic growth and economic development is that growth speaks quantitative numbers, while economic development is all about the qualitative changes in the structure of economy and society. Let’s see how both terms are interdependent and matter a lot for policy makers. Meaning of economic growth and economic development First of all