Capital accumulation is necessary but not sufficient for sustained growth from "summary" of Growth Theory by Robert M. Solow
The idea that capital accumulation is a crucial component of economic growth is a fundamental concept in the field of growth theory. It is widely recognized that investing in physical capital, such as machinery, equipment, and infrastructure, can lead to increased productivity and output in the economy. This investment in capital is essential for driving economic growth and development over time. However, while capital accumulation is necessary for sustained growth, it is not sufficient on its own. Simply accumulating capital without considering other factors can only take an economy so far in terms of growth potential. This is where the importance of technological progress and innovation comes into play. Technological progress plays a critical role in driving susta...
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