capital accumulation

Updated About encyclopedia.com content Print Article Share Article
views updated

capital accumulation Within Marxism, this is the central dynamic of capitalist development and refers to the process whereby capital is expanded through the production, appropriation, and realization of surplus value. It cannot be understood apart from capitalist relations of production. In conventional economics, it is also an important component of economic growth, but refers to a country's net investment in fixed assets: that is, equipment, machinery, inventories, buildings, social overhead capital, and overseas assets.