Here is the essential point of difference between Keynes’s involuntary unemployment and disguised unemployment as applied to an under-developed economy. Originally, no doubt, disguised unemployment was conceived by Mrs Robinson as an ext..
It is now perhaps generally accepted that the classical theory of commercial policy based on comparative costs has to be revised basically in the context of economic growth of under-developed countries. High rate of growth is consistent with f..
Let it be noted at once that the policy affects the pattern of foreign trade; it does not reduce its volume. On the other hand, the capital requirements of under-developed economies are such that world trade increases in volume in the pr..
One of the major factors determining the economic growth of a country is the rate of capital formation, or in other words, the ratio of investment to income. A high rate of growth of an economy depends, other things remaining the same, upon th..
We have seen that commercial policy in a developing economy must be directed to the realization, through export surplus on current consumption account, of enough foreign exchange to feed the process of investment involved in the planned target..
While there should not be much disagreement concerning the nature of import items to be subjected to control in the context of planned development, there may be differences concerning the method of control to be adopted. Broadly there are thre..
It thus appears that a rational commercial policy whose aim is to cut down imports to a planned minimum has to choose between the quota system supplemented by high tariff or licence auctioning on the one hand and the system of State trading on..