Book Description

The growth of an economy depends upon a multiplicity of factors such as the rate of capital formation, rate of growth of population, efficiency of the money and capital markets, availability of the required quantum and type of labour force, availability of natural resources, economic and political stability, administrative efficiency, role of social and cultural values, development of means of transport and communications, rise in standard of health and education etc., of all the factors which are affecting the rate of growth of an economy in developing countries is the capital accumulation. Further it is accepted by all the economists who are concerned with this problem that the capital accumulation plays a predominant role for economic growth of any country. Hence, economic growth is a direct function of the rate of capital formation and the experiences of advanced countries reveal that they could achieve economic growth through well developed capital markets.