Impact of dead capital on
Concept introduction:
Economic Growth or rate of growth of
Where Y=GDP, C=Consumption, I= Investment, G= Government, X=Exports and M=Imports. The value of C, I, G and (X-M) changes with a change in the method of aggregation of the income.
Real GDP- GDP adjusted for inflation/deflation is the Real GDP of the country. It is also called the “constant price”, “inflation corrected” or “constant dollar GDP”. It is the significant economic measure indicating the economic growth and
Where Yr=Real GDP, Y=GDP and D=adjustment factor
Dead Capital- It is a measure of the physical and financial assets that are legally non-existent. In other words, it implies the assets that are informally owned but not legally recognized. This asset cannot be bought, sold, valued or used for investment.
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