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Savings, Investment and Capital Formation

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 is the Gross Domestic Product minus final consumption. […]

Capital Formation in Economic Development

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. On the other hand, deficiency of capital has […]

What are Stabilization Funds?

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 in populist measures like promotion of education of […]