By R. M. Sundrum (auth.)
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Additional info for Economic Growth in Theory and Practice
It is only then that the historical changes in the productivity of labour in the economy as a whole can be explained in terms of the structural determinants of growth. g. Kindleberger, 1965, ch. 10, esp. pp. 180-1), but they need to be incorporated in a systematic model of growth and structural transformation. It is for this purpose that we construct an alternative model in terms of the proportions of the labour force employed in the various sectors, and the productivity of labour in these sectors.
25 UK Source: World Bank (1987). 1 per cent in South Korea (World Development Report, 1988; and Taiwan Statistical Yearbook, 1987). The relationship between these high growth rates and the rapid growth of exports is discussed in detail in Chapter 10. 7). The average rate of growth of these 16 countries is less than half what they achieved during the period 1950-73. The causes of this slackening of growth are currently being debated in the literature. The fact that this slackening of growth is accompanied by high rates of unemployment, unprecedented in the DCs, suggests the crucial role of a shortfall of aggregate demand below aggregate supply, the problem which gave rise to the Keynesian theory at the time of the Great Depression.
Therefore, they are best considered as episodes within the process of modern economic growth. As such, they deal with the slow start of some major technological advances, their rapid development for a period, and a final phase of saturation of these innovations. Economic Growth in Historical Perspective 21 (b) Tropical Development of LDCs The modern economic growth of the present-day DCs also coincided with a period of rapid growth of a number of other countries, especially those located in the tropical areas.