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Capital Productivity Ratio
 

Capital Productivity Ratio, one of the indicators of efficiency in using capital investment under socialism. As an indicator of total returns on capital (or the absolute efficiency of capital investment) for the country’s economy as a whole and for its sectors and geographical regions, it is determined as the ratio of the annual increase in national income (with its material structure in comparable prices specified) to the size of capital investments in the sphere of material production. An indicator of capital productivity is the magnitude which is the inverse to the indicator of capital intensity. The latter is calculated as the ratio of capital investment to the increase in gross output (see Economic Efficiency of Capital Investment).

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