Is the significance of foreign economic aid to be judged simply by the amount of aid or by something more? Can an under-developed economy be self-sufficient in the matter of planned investment for development purposes? If not, what is the degr..
The conclusion deduced from our first assumption is something of a paradox: the value of the foreign aid multiplier is high if the share of the foreign constituent in a piece of investment is relatively low, and vice versa. It thus looks as if..
I start with the definition of a developing economy a pedestrian start, yet a useful one. The initial position of a so-called developing economy is one of low-level stagnation. The warranted rate of growth, to use Harrod’s well-known ter..
A smooth transition of an economy from stagnation to progress is thus not inconceivable, particularly when foreign aid supplements the economy’s own efforts. But the conditions making for it are much too hypothetical; it is very much mor..
Harrod sets up an equation of growth for an open economy thus:1 GwCr = s — b where Gw is the warranted rate of growth, Cr is the required capital coefficient, s the fraction of income saved and b the foreign balance. The equation says that i..