Factors Determining Capital output Ratio

It is difficult to estimate the capital output ratio for an economy. The productivity of capital depends upon many factors such as the degree of technological development associated with capital investment , the efficiency of handling new types of equipment , the quality of managerial and organizational skill, the existence and the extend of the utilization of economic overheads and the pattern and rate of investment. For instance, the higher the proportion of investment devoted to the production of direct commodities, the lower the capital output ratio, and higher the proportion  of investment devoted to public  utilities, economic and social overheads. The higher shall be the capital output ratio, and higher the proportion of investment devoted to public utilities, economic and social overheads.