Abstract:

At the end of the 19th century, Marxists from different political factions in Russia used reproduction schema to discuss whether Russian capitalism could develop through the expansion of the domestic market. This led to a longstanding debate about the realization of surplus value. Based on the constructed two-sector accumulation rate model, this paper presents the following conclusions by demonstrating the dynamic process of independent accumulation in the investment goods sector. First, to maintain a balance between the two sectors, the investment goods sector not only needs continuous accumulation but also needs to increase its accumulation rate during this process. If we consider the intertemporal adjustment of the accumulation rate, it can be found that the increase in the accumulation rate of the investment goods sector also needs to occur under conditions of overproduction. This indicates that the independent accumulation of the investment goods sector faces numerous obstacles within a closed capitalist system. Second, an increase in the organic composition of capital not only relaxes the boundary conditions for growth in the investment goods sector but also reduces the accumulation pressure in the investment goods sector throughout the expanded reproduction process, thereby extending the time before reaching the growth boundary. If the increase in the organic composition of capital is accompanied by a rise in the rate of surplus value, then the accumulation rate of the investment goods sector will rise compared to the case where the rate of surplus value remains unchanged, which may lead to the reproduction process reaching the accumulation boundary more quickly. This suggests that the independent accumulation in the investment goods sector not only depends on the growth of scientific and technological knowledge but also requires control over the rapid increase in the rate of surplus value.

Key words:

investment goods sector, independent accumulation, accumulation rate model, reproduction scheme, overproduction