Academic literature on the topic 'Physical capital accumulation'

Purpose The purpose of this paper is to examine the long-run and short-run relationship between factor accumulation (i.e. physical capital and human capital) and economic growth by calculating the stocks of human capital and real physical capital. Design/methodology/approach The study uses endogenous growth model, where GDP per worker is the dependent variable and factor accumulation (real physical capital per worker and human capital) is the explanatory variable under the autoregressive distributive lag framework from 1973 to 2014 for Pakistan. Findings The results suggest that there is a long-run relationship between factor accumulation and GDP per worker in Pakistan. Findings of the study are consistent with the endogenous growth model suggesting that accumulation of human capital increases labor productivity, employment level and per capita income, and causes economic growth. Practical implications Developing countries like Pakistan should increase share of human capital for economic development. Government should invest in the education sector because investment in human capital has a large potential of productivity growth and welfare increase in developing countries. Originality/value This study challenges the notion of human capital and real physical capital stock used by different researchers. Considering human capital as a core factor of production, a series of human capital as average year of schooling is calculated by utilizing the perpetual inventory method.

This study examines the contribution of human capital accumulation to regional economic growth using panel data for 82 subjects of the Russian Federation over 2002–2019. This paper aims to test the hypothesis that in the long-run equilibrium there exists a connection between economic growth and human capital accumulation in the regions of Russia. From the point of view of econometrics, it would mean that we should refute the hypothesis that there is no cointegration of time series describing the aforementioned variables. General theoretical framework was drawn from the neoclassical growth theory, and panel data econometrics suggested the appropriate empirical methodology. Pooled mean group and fully modified least squares estimators were applied to an autoregressive distributed lags model based on the Solow model. The results indicate that accumulation of human capital has a positive and statistically significant long-term impact on the rate of growth of per capita income and that these variables are cointegrated. Such calculations allow us to make the following conclusions: per capita GRP is cointegrated with physical and human capital on the regional level. The cointegrating equation ‘explained’ more than 90% of per capita GRP variance. Human capital accumulation had a significant positive impact on per capita GRP growth in the long run; such impact exceeded the impact of physical capital accumulation. The positive impact of human capital accumulation on per capita GRP growth surpassed the negative elasticity of growth GRP by the amount of resource excluded from the real sector to provide support to students and maintain the regional education system. The paces at which regional economies were heading towards the steady state differed which is an evidence that there exist an incredible manifold of ways and means for regions to adjust to disbalancies

The objective of this paper is to analyse the role of both human and physical capital in economic growth in Hungary during the 20th century by extending the already available data on physical and human capital. Besides the standard measure for the volume of human capital, we develop a simple method to estimate the value of the human capital stock in Hungary between 1924 and 2006. While the volume index slowly grows over time, the value of human capital shows a decline during the late socialist period. Applying the value of human capital in a growth accounting analysis, we find that the Solow residual has no long-run effect on economic growth anymore.

The efficiency of physical capital accumulation plays a critical role for economic growth. This paper aims at examine if economic freedom promotes economic growth via physical capital accumulation. This is done by estimating a production function by replacing the inputs with institutional indices. The first input is GDP per capital growth rate which serve as a proxy for institutional aspects and the other input are the economic freedom indexes which will serve as proxies for physical capital accumulation. This is done by applying the augmented mean group (AMG) estimator that is designed for dealing with macro panel data analysis, including twenty developing countries where the economies have experienced a rapid growth, and the time period are between 1995 and 2017. The theoretical framework is based on the Solow growth model, institutional theory and marginal efficiency of capital (MEC). The results show that economic freedom promotes economic growth via physical capital accumulation where GDP per capital growth rate served as a proxy for institutional aspects and economic freedom indexes as proxies for physical capital accumulation. The results also show that the AMG estimator is the best fit for macro panel data analysis since it are designed for dealing with heterogeneity.

This chapter builds a model in which labour market regulations influence labour productivity growth through labour markets. The model decomposes labour productivity growth into components attributable to (i) changes in efficiency; (ii) technological change; (iii) physical capital deepening; (iv) human capital accumulation; (v) labour market regulations changes. The empirical analysis Penn World Tables and Economic Freedom of the World data is performed for 1970–95 and 1995–2014. Findings can be summarized as follows. First, physical capital deepening is the major driving force behind productivity growth over the period. Labour market regulation changes having contributed next to nothing during 1970–95, become the second most important force of economic growth after 1995. Second, relatively rich nations benefit more from changes to labour market regulations than do relatively poor nations. Finally, contributions from labour market regulations changes to growth is stronger for countries with less liberalized labour markets.

There has been an intense debate on the reasons of variations in economic performances of different countries. Institutions and technological structure are among the leading determiners. Institutions are formal and informal constraints affecting investments in physical/human capital, and technology. Factors like economies of scale, technology, education, or accumulation of physical and human capital are not all for economic growth, which itself represents political and economic institutions as the basis for the fundamental differences in economic development. At the end of the 20th century, economic thought oriented towards analysis of the institutional environment. In the 1990s, significant steps were taken with Heterodox approaches to provide more consistent alternatives to the mainstream economy. The institutional economy shows an alternative approach that adds more depth to the discussions in this area. The main objective of this chapter is to point out the contributions of Schumpeter and Veblen.

This chapter reviews population trends over the last two hundred years and population projections to the end of this century. In 2100 the world population will have stabilized but its geographical distribution will have substantially changed compared to 2015. The chapter then discusses the five stages of the demographic transition, and different neo-Malthusian and non-Malthusian theories of the relation between population growth and economic development. It emphasizes in particular the effects of rapid population growth on land and resource availability, human capital formation, population quality, the accumulation of physical capital, employment, wages, and income inequality. The effects of rapid population growth rate over a given period were found to change in line with the population size and density at the beginning of the period considered.

This chapter attempts to capture the effects of R&D led endogenous growth in an open economy Computable General Equilibrium (CGE) framework which is based on R&D based social accounting Matrix (SAM). Effects of physical and R&D led knowledge capital accumulation have been studied through simulation experiments. It is reported that increase of public expenditure in R&D promotes growth and expands sectoral outputs at the cost of fiscal deficit. Moderate increase of direct tax in the form of education can finance public expenditure on R&D without much reduction of real domestic income of the households.

This chapter examines the link between intercity trade and long-run urban growth. It begins by introducing a Ventura-type model of the growth of isolated cities that allows for investment in physical capital and in urban transportation as ways to increase urban productive capacity. It then considers a sample of growth empirics for the United States, European, and Brazilian systems of cities with an emphasis on transportation improvements and factor accumulation. It also describes a model of economic growth in a system of cities that leads to a precise description of the law of motion in dynamic settings of either autarkic cities or specialized cities engaged in intercity trade. Finally, it explores the interrelationships between economic integration, urban specialization, and growth; the Rossi-Hansberg–Wright model of urban structure and its evolution; empirical aspects of urban structure and long-run urban growth; and sequential urban growth and decay.

While emerging information technologies have been infusing to the production of manufactured goods at higher rate for widespread use of services, with this case, the services sector in terms of production and consumption eliminates the need to have done. Moreover, many service branches have been subject to international trade and more with each year, the share of service trade is increasing in international trade. International service trade with helping to close the technological development gap between developing and developed countries has significant role on economic growth, realization for process of economic development in structural imbalances and accordingly the macroeconomic policy response. International service trade of the country's economic transformation in the process, it is purposed that production function method based on the model is used in the context of traditional and modern service trade on economic growth, to examine the effects and the impacts on direction of the transition economies between 2000 and 2010. For 15 transition economies having satisfied data; the effects of modern and traditional trade in service on growth rate is examined with using panel data analysis. The model shows that accumulation of capital per capita and for representing human capital chosen the received tertiary education enrolment rate, traditional and modern trade in service has significant effect on growth. On the other hand, openness has no significant effect on growth for chosen country group and identified time period. It can be said that policies aimed physical and human capital stock can create significant effect on growth.

Negative pressure is one of the metastable states of liquids at which it can be extended up to a certain limit without a gap of continuity. There are numerous experimental studies where a negative pressure up to 40 MPa has been obtained at laboratory conditions. However, these results of the experimental works were not practically implemented, as real liquids both in the nature and the technological processes contain impurities. Under certain kinetic and hydrodynamic conditions the waves of negative pressure in real liquids (crude oil, water, and water-based solutions) were observed. The wave of negative pressure is a turned soliton wave with one negative hump. It is a conservative wave, which maintains its shape and dimensions, and travels long distances with the speed of sound. An advanced technology of generation of the negative pressure wave in real systems allowed creating completely new energy saving technology. This technology based on negative pressure phenomenon has been already used for increasing oil production efficiency during various oil well operations, cleaning of oil well bore, and pipelines from various accumulations. It is shown that a new technology has a lot of potentials for bottom-hole cleaning operations, oil recovery enhancement, pipeline transportation, gas-lift operation etc. Negative pressure is known to be one of the metastable states at which liquids can be extended up to a certain limit. Theoretic evaluations show that in pure liquids negative pressure may reach large values while the liquid may stand significant extending efforts. For instance, the maximum negative pressure that may be sustained by ideally pure water is estimated as −109N/m2. It means that an imaginable rope of completely pure water with the diameter of 0.01m can sustain a huge extending effort more than 105 N. It is evident that the real experimental values of negative pressure are much less than the corresponding theoretic estimations. It is connected with the impossibility of obtaining ideally pure liquids without any “weak places” (gas bubbles, admixture, etc) and with the circumstance that in experience, the rupture often happens not in the liquid volume but on the surface touching the walls of the vessels weakened by the existence of thin films, embryos, etc. There are numerous results of the experimental work of static and dynamic character, where negative pressure has appeared in one or another degree [1]. In laboratory conditions, negative pressure apparently was first revealed in the experiences made by F. M. Donny (1843), who used degassed sulfuric acid and obtained negative pressure only −0.012 MPa. Among the further attempts of receiving bigger negative pressure, it is worth mentioning the experiences made by O.Reynolds, M.Bertelot and J.Meyer. Basing upon a centrifugal method and using mercury, L.J.Briggs obtained the record value of negative pressure (−42.5 MPa). But as a matter of fact, beginning from the first experiences by F. M. Donny, the main condition in the investigations for the appearance of negative pressure has been the homogeneous character of the liquid and high degree of the purity the liquid-vessel system. Significant values of negative pressure has been obtained under those conditions, however these results of a great scientific importance have no effective applications in practice as real liquids in Nature and technological processes are heterogeneous multicomponent systems. A long-term experimental work has been done to generate negative negative pressure in real liquid systems and investigate influence of this state on thermohydrodynamical characteristics of natural and technological processes [2,3]. Basing on the idea that negative pressure can be created due to the sudden character of extending efforts a direct wave of the negative pressure in real liquids (water, oil, solutions etc.) have been obtained experimentally. For impulsive entering into metastable (overheated) zone in a phase diagram “liquid-vapor” the pressure should drop so fast that the existing centers of evaporation (bubbles, embryos, admixtures etc.) would not be able to manifest themselves for this period. In these terms purity of the liquid is not decisive, and herewith there might exist states of an overheated liquid with the manifestation of negative pressure. It was determined that wave of the negative pressure resembling overturned soliton wave with one but negative peak propagates with speed of sound. The typical variation of the pressure in the petroleum stream in pipe is given in Figure 1. Reversed wave of the negative pressure was not recorded during the experiments. Evidently this is associated with considerable structural changes in the liquid after the passing of the direct wave. The arising negative pressure though being a short-term, results in a considerable overheating of the fluid system and leads to spontaneous evaporation and gas-emanation with the further cavitation regime. It was determined that after passing of the negative pressure wave hydraulic resistance in the system becomes much less, and significant increase of permeability of the porous medium and intensification of the filtration process take place. On the base of the investigations it was made a conclusion that any discharge in the hydraulic systems when the drop of the pressure requires much less time that relaxation of the pressure in the system inevitably results in the arising of rarefaction wave, in particular, the negative pressure wave [4]. The larger is the hydraulic system and the higher is the depression of the pressure, the more intensively the negative pressure wave may manifest itself. In certain terms waves of the positive pressure may be reflected from free surfaces, different obstacles, from contact surfaces between phases in the form of the reverse wave of the negative pressure. On this base there were presented numerous theoretical and experimental works on the simulation of the process, investigation of impact of the negative pressure on certain physical features of real systems [5]. The negative pressure wave may lead to very hard complications: showings of oil and gas leading sometimes to dreadful open fountains, borehole wall collapse, column crushing, gryphon appearance [6]. Analysis of numerous facts of complications, troubles in wells as water-oil-gas showings, crushing of columns, collapses, gryphon formation demonstrates that they arise usually as a result of round-trip operations in drilling of wells and their capital repairs. The negative pressure wave may be initiated by a sudden pulling of pipes or drilling equipment, as well as their sudden braking, quick opening of a valve at the well exit, etc, resulting in metastable extension of the working fluid agent. Though impulse negative pressure manifests itself as a significant dynamic factor, its structural consequences are more dangerous for an oil well. Moving along a well the negative pressure wave results in the spontaneous boiling of the water in the drilling fluid, and as a result of considerable reduction of its specific weight the hydrostatic column is “switched-off’ for some seconds and this may be sufficient for oil and gas showings of the well to be appeared accompanied often by crushing of columns and collapsing of wells due to great destroying energy manifestation. Negative pressure waves may be considered also as one of the dominant factors in geophysical processes, especially, in evolution and appearance of volcanic eruptions and earthquakes [7,8]. Extreme dynamic processes in the underground medium as a matter of fact can be considered as a synergetic manifestation of the negative pressure together with other thermohydrodynamical factors. The waves of negative pressure in the underground environment may be initiated by tectonic dislocations and faults as a result of different dynamic processes, dramatic decrease of pressure during the displacement of fluids and rocks. They may arise also in the form of a reverse waves as a result of reflection of ordinary seismic waves from different underground surfaces. On the basis of received results the method of artificial creation of negative pressure waves has been created [4]. The essence of the method is that negative pressure waves can be generated by means of discharge in hydraulic systems (pipes, wells, etc) when the drop of the pressure takes place during the characteristic time much less than that of pressure relaxation in the system. The greater is the volume of hydraulic system and the higher is the depression of the pressure, the more intensively the negative pressure wave may manifest itself. This method was taken as a basis of elaboration of principally new technologies and installations to increase effectiveness and efficiency of some oil recovery processes. It has been worked out and widely tested in field conditions new technologies on using of the negative pressure phenomenon for cleaning of oil producing hydraulic systems/well bore, pipeline/from various accumulations and increasing of effectiveness of oil producing at different well operation methods. The technology provides generation negative pressure waves in the well using the special mechanisms that leads to the shock depression impact upon the oil stratum, and as a result, to considerable growth in the oil influx, bottom-hole cleaning, accompanied by essential saving both reservoir and lifting energies, elimination and prevention of sandy bridging, paraffin, silt, water, etc. accumulations. For implementations of these technologies corresponding installations have been elaborated, in part, equipments for cleaning out of oil holes from sand plugs, increasing of efficiency and effectiveness of gas-lift well operations and bottom-hole pumping. In cleaning out of oil-holes from sand plugs the most operative and effective liquidation of different sand plugs irrespective of their rheological character is provided, associated with complete bottom-hole cleaning, essential increase of oil recovery and overhaul period. Elaborated equipment is simple and easy to use. Other comparatively advantageous application of the technology provides increase of efficiency of a gas-lift well operation, expressed in considerable reduction of a specific gas consumption associated with essential increase of oil recovery and overhaul period. The design of the equipment is reliable and simple to service. There are different modifications of the equipment for single-row, double-row lifts in packer and packerless designs. The introduced technologies have passed broad test in field conditions. The operative and complete cleaning of numerous oil wells was carried out, where the altitude of sand plugs varied from 20m to 180m; oil output of wells and their overhaul period have been increased and specific gas discharge reduced significantly.