Savings, Investment and Capital Formation

March 11, 2016

GDP measures the total output of goods and services for final use occurring within the domestic territory of a given country, regardless of the allocation to domestic and foreign claims.  A part of this is consumed and what left after the consumption is “saving”. So, gross domestic saving...

Capital Formation in Economic Development

December 11, 2015

Development of a nation without the availability of adequate capital either in the form of physical capital or in the form of human capital is not possible. The higher the rate of capital formation (physical as well as human), the faster is the pace of economic growth....

What are Stabilization Funds?

March 7, 2015

Countries which are endowed with natural resources like oil, gas, minerals etc. have huge revenue inflows which give them as many options to use them for development and growth. These countries have a windfall of funds which are used to attain a sustainable economic growth and invest...