Theories of Growth

Abstract

There is already a large literature on growth theory. In much of this literature, the growth of the national income of countries is mainly explained in terms of the stocks of various factors of production — namely, land, labour, capital and the state of technology, and their variation over time. These are the theories developed by classical and neo-classical writers on the subject. Hence, these factors may be described as the classical determinants of growth. Their main distinguishing feature is that they deal primarily with the supply factors. Part II of the book deals with the extent to which these supply factors are able to explain growth as it has actually taken place.KeywordsWage RateCapital AccumulationMarginal ProductFixed CapitalSubsistence LevelThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.