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  2. Capital formation is the net capital accumulation during an accounting period for a particular country. The term refers to additions of capital goods, such as equipment, tools, transportation assets, and electricity.
    www.investopedia.com/terms/c/capital-formation.asp
    www.investopedia.com/terms/c/capital-formation.asp
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    What is the process of capital formation?This is capital formation. The process of capital formation involves three steps: (1) Increase in the volume of real savings; (2) Mobilisation of savings through financial and credit institutions; and (3) Investment of savings.
    What is the difference between capital formation and capital accumulation?Capital Formation refers to the increase in the stock of real capital in an economy during an accounting period. In other words, the creation of things that help us produce more. We commonly use the term in the study of macroeconomics. The term capital accumulation has the same meaning. I use the two terms interchangeably in this article.
    What is gross capital formation?In the national accounts (e.g., in the United Nations System of National Accounts and the European System of Accounts) gross capital formation is the total value of the gross fixed capital formation (GFCF), plus net changes in inventories, plus net acquisitions less disposals of valuables for a unit or sector.
    What is human capital formation?In this way, the concept can be extended to cover human capital formation. In fact, it is only real physical assets and not financial assets such as shares, bonds, currency notes and bank deposits are included in capital formation as they increase the productive capacity of the economy.
     
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