How do GDP and GCF differ? What is the difference between the kinds of GDP such as GDP PPP? I looked but didn't understand any explanations on the internet.
http://en.wikipedia.org/wiki/Purchasing_power_parityGDP dollar estimates here are derived from purchasing power parity (PPP) calculations.
http://devdata.worldbank.org/external/CPdefinition.asp?icode=NE.GDI.TOTL.ZS&ccode=CHN [Broken]Gross capital formation (formerly gross domestic investment) consists of outlays on additions to the fixed assets of the economy plus net changes in the level of inventories. Fixed assets include land improvements (fences, ditches, drains, and so on); plant, machinery, and equipment purchases; and the construction of roads, railways, and the like, including schools, offices, hospitals, private residential dwellings, and commercial and industrial buildings. Inventories are stocks of goods held by firms to meet temporary or unexpected fluctuations in production or sales, and "work in progress." According to the 1993 SNA, net acquisitions of valuables are also considered capital formation.