What is a Capital Resource?

Capital resources are durable goods produced by an economy in order to produce other goods. Capital goods include machines, roads, computers, hammers, trucks, steel mills, cars, washing machines and buildings. The accumulation of specialized capital goods is an essential element of economic development. Human beings make use of the various resources that they rely on to survive, and constantly recreate the resources for human beings to continue to sustain life.

Capital resources

Right!

Capital resources are durable goods produced by an economy in order to produce other goods. Capital goods include machines, roads, computers, hammers, trucks, steel mills, cars, washing machines and buildings. The accumulation of specialized capital goods is an essential element of economic development. Human beings make use of the various resources that they rely on to survive, and constantly recreate the resources for human beings to continue to maintain their lives.

classification

According to Harvard's Michel Porter's definition of capital resources, there are three types of indicators, one is the total domestic investment, the additional expenditure on fixed assets in a country's economy plus the net change in inventory levels; the second is foreign direct investment (FDI ), It refers to the net inflow of investment to obtain long-term rights and interests (10% and more voting shares) of an enterprise operating in the economy of a country, which is different from investors, which is international The sum of equity, income reinvestment, other long-term capital and short-term capital in revenue and expenditure; the third is the market value of the stock market, also known as the capital market value, which refers to the sum of the capital market value of all companies listed on domestic stock exchanges. This indicator It reflects the development scale of a country's financial market. In this article, we are converting the total domestic investment to PPP international US dollars. The other two indicators are still calculated at the current US dollar.