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Published online by Cambridge University Press: 20 November 2018
The economic status of a country may be analyzed and measured in terms of a number of different attributes and components. The present study focuses on capital formation (i.e. generation of new wealth in the form of capital) because capital formation is a major and comprehensive determinant of the economy's growth. The ability of an economy to generate sufficient new capital is the foundation of its strength and vitality; only to a limited extent may domestic capital formation be supplemented by foreign funds.