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Without capital accumulation, is productive scale expansion possible?

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  • Masaya Fujita

Abstract

The expansion of productive scale is often funded by the immediate reinvestment of a depreciation fund. This phenomenon is called Lomann-Ruchti effect. The question is whether this is possible without additional investment or not. One theory claims this is attributable to the increased circulation of advanced capital, whereas, this article argues that the effect is realised by capital accumulation hidden behind depreciation procedures.

Suggested Citation

  • Masaya Fujita, 2020. "Without capital accumulation, is productive scale expansion possible?," International Journal of Critical Accounting, Inderscience Enterprises Ltd, vol. 11(2), pages 114-124.
    • Handle: RePEc:ids:ijcrac:v:11:y:2020:i:2:p:114-124
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