Capital in the Twenty-First Century

by Thomas Piketty

A very large share of the world’s capital stock would of course be accumulated in Asia, and especially China, in keeping with the region’s future share of global output. But according to the central scenario, the capital / income ratio would be the same on all continents, so that there would be no major imbalance between savings and investment in any region. Africa would be the only exception: in the central scenario depicted in Figures 12.4 and 12.5, the capital / income ratio is expected to be lower in Africa than in other continents throughout the twenty-first century (essentially because Africa is catching up economically much more slowly and its demographic transition is also delayed).45 If capital can flow freely across borders, one would expect to see a flow of investments in Africa from other countries, especially China and other Asian nations.