CAPITAL ACCUMULATION

Sociologyindex, Human Capital Accumulation, Capital accumulation, Capital, Sociology Books 2011, Human Capital

Capital accumulation is the process of accumulating resources for use in the production of goods and services. Private capital accumulation takes place when productive capacity exceeds the immediate needs for consumption.

For example, a farmer can accumulate capital (stored grains, improved equipment etc.) during years of good harvests and good farm revenues.

Generally, accumulation is directly linked to profitability: the resources used to make commodities can be replaced and augmented when the commodity is sold for a profit.

Capital accumulation can also take place in the public sector, where, from a structuralist approach within a conflict perspective, the state is seen as performing the function of aiding in the accumulation of private capital.

This function may be performed by the state providing an educated work force (human capital), building rail lines into resource areas, maintaining a legal system to resolve contract disputes and providing tax incentives or tax breaks.

Diverging Waves of Capital Accumulation, Black Capital Formation and the Specificities of Black Capitalism: From B.T. Washington, W.E.B. DuBois, to Harold Washington and Beyond
Thomas, Darryl
Paper presented at the annual meeting of the Midwest Political Science Association 67th Annual National Conference
Abstract: This paper examines the Golden Age of Black Capitalism with the making of US Empire in the 19th/20th centuries and the recent 21st century US Empire. It draws attention divergent waves of capital accumulation and the segregationist economic models and Jim Crow Business models they spawn as well as the post-Fordist and globalization model of black capital formation.

Capital Accumulation and Growth: A New Look at the Empirical Evidence
Bond, Steve, Asli Leblebicioglu, Fabio Schiantarelli
Paper provided by Institute for the Study of Labor (IZA)
Abstract: We present evidence that an increase in investment as a share of GDP predicts a higher growth rate of output per worker, not only temporarily, but also in the steady state. These results are found using pooled annual data for a large panel of countries, using pooled data for non-overlapping five-year periods, or allowing for heterogeneity across countries in regression coefficients. They are robust to model specifications and estimation methods. The evidence that investment has a long-run effect on growth rates is consistent with the main implication of certain endogenous growth models, such as the AK model.

Capital accumulation and unemployment: new insights on the Nordic experience
Marika Karanassou, Hector Sala and Pablo F. Salvador
Cambridge Journal of Economics Advance Access published online on June 16, 2008.
This paper takes a fresh look at the analysis of labour market dynamics and argues that capital accumulation plays a fundamental role in determining unemployment movements. This role has generally been examined by considering indirect transmission channels of the capital stock effects, i.e. using variables like interest rates or investment ratios in the NAIRU framework. Here we advocate a different approach. We directly estimate the effects of capital stock in the labour market by applying the chain reaction theory of unemployment, and we find that capital stock is a major determinant of unemployment in the Nordic countries. In particular, the different unemployment experiences of these economies derive from the temporary (albeit prolonged) negative shocks to capital stock growth in Denmark and Sweden, and the permanent downturn of capital stock growth in Finland. We are thus able to explain why the crisis of the early 1990s had a more acute impact in Finland than in its twin economy, Sweden.

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