Rapid output growth without equally rapid capital stock or employment growth must have reflected rapid productivity growth.

Muted wage growth increases competitiveness, and underutilized labor and capital are redeployed.

Although high growth requires large scale capital formation, the relation between investment in real capital assets and human capital in China seems to be out of proportion.

This misallocation of capital hampers any recovery and dims longer term growth prospects.

WASHINGTON, DC European leaders are convinced that bank capital is expensive, in the sense that raising capital requirements would slow economic growth.

The notional pension capital accrues an interest like in the case of the funded pension scheme however, in contrast to the funded pension scheme where the growth of the capital depends on the return on the investment, the growth of the first tier capital depends on the wage growth in the country.

Growth that relies on capital inflows or commodity booms tends to be short lived.

As a result, its economic model spawned a labor saving, capital intensive growth dynamic.

The country requires human and physical capital to raise productivity and achieve sustained growth.

And those growth models showed us that countries can accumulate fairly rapid growth rates just by investing in capital but at some point.

Working longer will boost economic growth, for if people work longer, then so does capital.

Without sustained investments in human capital and institution building, growth is condemned to peter out.

Moreover, most of the observed growth was generated by capital rather than labor intensive sectors.

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.

If the fruit of economic growth reaches the poor through employment creation, growth in capital intensive sectors has a limited effect on poverty reduction.

But meeting the challenge will require vigorous growth from America s other 30 especially private capital spending.

Among the drivers of growth, domestic capital formation retained much of its momentum from preceding years.

We also found that increasing capital buffers to appropriate levels helps, rather than hurts, economic growth.

Without this capital there is impossible the economical and social growth and building capitalism and democracy.

In earlier times, growth was fueled by capital scarcity capital investment attracted a high rate of return, and this created a virtuous circle of saving and investment.

Judging by low stock prices and high capital outflows, investors were already betting against high growth rates.

As developing countries have learned from experience, all these effects are bad for capital allocation and growth.

As countries become more prosperous, one would expect their growth rates to slow. In earlier times, growth was fueled by capital scarcity capital investment attracted a high rate of return, and this created a virtuous circle of saving and investment.

Also driving China s high investment rate is the declining efficiency of investment capital, reflected in China s high incremental capital output ratio (annual investment divided by annual output growth).

The decline has occurred because, relative to population growth, fixed capital investment, knowledge and skills, and improvements in institutions have not compensated for the degradation of natural capital.

The problem is that for poor economies, raising the capital needed to relax binding growth constraints is difficult.

The problem? An invasion of short term capital flows fleeing the slow growth, low interest rate advanced countries.

So China is stuck in a currency creating cycle GDP growth encourages investment, which boosts demand for capital.

14. Albania apos s stock of capital, largely obsolete, is another major long term obstacle to future growth.

In a very volatile financial system, developing countries continued to be net exporters of capital, at a time when they needed that capital to develop capabilities and spur growth.

Sana'a is the fastest growing capital city in the world with a growth rate of 7 , while the growth rate of the nation as a whole is 3.2 .

In contrast, coordinated regional strategies based on export led growth would encourage more efficient use of capital, expand both intraregional and interregional markets and encourage capital flows within the region.

These policies would affect US economic growth, the budget deficit, national saving, and hence global trade and capital flows.

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

Brazil had experienced an earlier version of its current economic miracle, with stunning growth rates financed by capital imports.

Growth will need to rely to a much greater extent on sustained improvements in human capital, institutions, and governance.

But, while the resulting surge in capital flows to emerging markets stimulated economic growth, it also inflated asset bubbles.

Even the IMF now recognizes that capital market liberalization has delivered neither growth nor stability to many developing countries.

For Smith and his successors over the first 175 years, any episode of sustained economic growth overwhelmingly required investment capital.

That means that China is beginning to rejoin the human race as capital accumulation meets scarcer labor and growth slows.

Africa s growth potential has caught the attention of foreign investors, who have contributed to a rapid increase in capital expenditure.

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

Growth will also not be sustained if Asia's huge needs for investment in infrastructure, technology and human capital remain unmet.

Sometimes borrowed capital did not contribute sufficiently to economic growth, as was frequently the case in the least developed countries.

Instead, the keys to growth and development appeared to lie beyond an increase in capital intensity as measured by capital output ratios skills, education, technology broadly understood, and improvements in organizational management.