what is meant by physical capital formation
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physical capital formation. Definition English: Tangible asset that that is created by humans and somehow used in production. Physical capital is often used to refer to economic capital in some form.
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- Physical capital consists of tangible, man-made objects that a company buys or invests in and uses to produce goods. Physical capital items, such as manufacturing equipment, also fall into the category of fixed capital, meaning they are reusable, and not consumed during the production process.
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