Capital

Abstract

Growth in any economic system is only made possible through the substitution of capital for the other factors of production, land and labour. Substantial increases in land and labour productivity lead ultimately to greater prosperity and to higher personal disposable incomes which in turn generate further demands for greater growth. The mechanisms by which capital is generated and allocated within the system constitute a crucial aspect of spatial organisation since it is through their operation that the intricate relationship between scarcity and growth is created, maintained or modified (section 4.1.1).