The Accumulation of Capital Shabanu Popatiya ECON 330 Professor Paul Notley Tuesday, March 15, 2016 In the history of development of economics, accumulation of capital has been thought of as a key factor in the process of economic growth. The process of purchasing a means of production and hiring labour power which produces goods and services which, in turn, becomes a profit is called accumulation of capital. (Yates, 2003, pp. 168-170) There are many factors that contribute to the determination of accumulation of capital, some of which include constant capital, variable capital and surplus value. But first, what is capital? Basically, capital is the money that is invested in order to make a profit. Constant capital is the value of goods and materials required to produce a good or...