An Increase in the Value and Productivity of Tangible Fixed Assets as a Factor in Balancing Economic Inequalities

Abstract

This article aims to analyze the impact of tangible fixed assets on GDP growth, and thus on economic growth and increasing employment opportunities, which leads to the rationalization of economic inequality. Employment opportunities and equitable remuneration in terms of human capital theory mean to achieve a positive state of the economy. It points to the role of tangible assets in the growth of labour productivity and the impact on GDP. It also tackles the issue of measurement of assets with respect to their wear-called depreciation. The analysis tool used was the theory of production and cost functions. The resulting modelling is further evaluated in particular in regards to labour productivity. It was pointed out that in underdeveloped economies, the share of labour in GDP is high with a low share of assets. Topics raised in the article include assets and their role in economic development as measured through GDP and productivity at work. These topics are closely linked to reducing socio-economic inequalities and to sustainable economic development.