Capital accumulation is necessary for sustained growth from "summary" of Theory of Economic Growth by W. Arthur Lewis
Capital accumulation is at the heart of the process of economic growth. It is through the accumulation of capital that a society is able to increase its productive capacity and generate sustained growth. This process involves saving a portion of current income and investing it in physical and human capital to enhance productivity in the future. In the initial stages of development, capital accumulation plays a crucial role in jumpstarting economic growth. By investing in new technologies, infrastructure, and education, a society can increase its productivity levels and lay the groundwork for sustained growth. As more capital is accumulated, the economy becomes more efficient and is able to pr...
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