Advertisement

Allyn Young’s Contribution to Growth Theory

  • Ramesh Chandra
Chapter
Part of the Great Thinkers in Economics book series (GTE)

Abstract

This chapter takes up Smith’s and Young’s growth ideas, later developments by Kaldor and Currie, post-war development economists and ‘new’ growth and trade theorists. Young interpreted Smith’s relationship between the division of labour and market size in terms of cumulative causation and concluded that the division of labour in large part depends on the division of labour. While Smith laid great stress on the institutional arrangements promoting growth, Young explained the mechanics of the growth process more fully. Young’s students Kaldor and Currie, as well as others like post-war development economists, ‘new’ growth and trade theorists, further developed his growth ideas.

References

  1. Aghion, P. and P. Howitt (1998), Endogenous Growth Theory, Cambridge: MIT Press.Google Scholar
  2. Blitch, Charles P. (1995), Allyn Young: The Peripatetic Economist, Houndmills and London: Macmillan.Google Scholar
  3. Blomström, M., R.E. Lipsey and M. Zejan (1996), ‘Is fixed investment the key to economic growth?’, Quarterly Journal of Economics, 111 (February), pp. 269–73.Google Scholar
  4. Buchanan, James M. and Yong J. Yoon (1999), ‘Generalised increasing returns, Euler’s theorem, and competitive equilibrium’, History of Political Economy, 31(3), pp. 511–23.CrossRefGoogle Scholar
  5. Buchanan, James M. and Yong J. Yoon (2000), ‘A Smithian perspective on increasing returns’, Journal of the History of Economic Thought, 22(1), pp. 43–48.CrossRefGoogle Scholar
  6. Chandra, Ramesh (2002), ‘Thinking about development: going back to the basics’, Strathclyde Papers in Economics, Glasgow: University of Strathclyde.Google Scholar
  7. Chandra, Ramesh (2003), ‘Allyn Young revisited’, Journal of Economic Studies, 30(1), pp. 46–65.CrossRefGoogle Scholar
  8. Chandra, Ramesh (2004), ‘Adam Smith, Allyn Young and the division of labour’, Journal of Economic Issues, 38, pp. 787–805.CrossRefGoogle Scholar
  9. Chandra, Ramesh (2006), ‘Currie’s leading-sector strategy of growth: an appraisal’, Journal of Development Studies, 42, pp. 490–508.Google Scholar
  10. Chandra, Ramesh and Roger J. Sandilands (2003), ‘Does investment cause growth? A test of an endogenous demand-driven theory of growth applied to India 1950–96’, in Neri Salvadori (ed.), Old and New Growth Theories: An Assessment, Cheltenham: Edward Elgar.Google Scholar
  11. Chandra, Ramesh and Roger J. Sandilands (2005), ‘Does modern endogenous growth theory adequately represent Allyn Young?’, Cambridge Journal of Economics, 29, pp. 463–73.CrossRefGoogle Scholar
  12. Chandra, Ramesh and Roger J. Sandilands (2006), ‘The role of pecuniary external economies and economies of scale in the theory of increasing returns’, Review of Political Economy, 18(2), pp. 193–208.CrossRefGoogle Scholar
  13. Clapham, J.M. (1922), ‘On empty economic boxes’, Economic Journal, 32, pp. 305–14.Google Scholar
  14. Currie, Lauchlin (1974), ‘The ‘leading sector’ model of growth in developing countries’, Journal of Economic Studies, 1, pp. 1–16.CrossRefGoogle Scholar
  15. Currie, Lauchlin (1981), ‘Allyn Young and the development of growth theory’, Journal of Economic Studies, 8, pp. 52–60.CrossRefGoogle Scholar
  16. Currie, Lauchlin (1983), ‘The ‘multiplier’ in economic literature’, Journal of Economic Studies, 10(3), 42–8.CrossRefGoogle Scholar
  17. Currie, Lauchlin (1997), ‘Implications of an endogenous theory of growth in Allyn Young’s macroeconomic concept of increasing returns’, History of Political Economy, 29, pp. 413–443.CrossRefGoogle Scholar
  18. Currie, Lauchlin (2018), ‘The ‘Big Push’ and balanced and unbalanced growth’, in Sandilands (2018), pp. 11–25.Google Scholar
  19. Denison, E. (1967), Why Growth Rates Differ: Post-war Experience in Nine Western Countries, Washington, DC: Brookings Institution.Google Scholar
  20. Fine, B. (2000), ‘Endogenous growth theory: a critical assessment’, Cambridge Journal of Economics, 24(2), 245–65.CrossRefGoogle Scholar
  21. Hirschman, Albert O. (1958), The Strategy of Economic Development, New Haven: Yale University Press.Google Scholar
  22. Hollander, Samuel (1971), ‘Some implications of Adam Smith’s analysis of investment priorities’, History of Political Economy, 3, pp. 238–64.CrossRefGoogle Scholar
  23. Hollander, Samuel (1973), The Economics of Adam Smith, London: Heinemann.Google Scholar
  24. Kaldor, Nicholas (1964), ‘Dual exchange rates and economic development’, Economic Bulletin for Latin America, September.Google Scholar
  25. Kaldor, Nicholas (1966), Causes of the Slow Rate of Economic Growth in the United Kingdom, Cambridge: Cambridge University Press.Google Scholar
  26. Kaldor, Nicholas (1972), ‘The irrelevance of equilibrium economics’, Economic Journal, 82, pp. 1237–55.CrossRefGoogle Scholar
  27. Krugman, Paul (1990), Rethinking International Trade, Cambridge: MIT Press.Google Scholar
  28. Krugman, Paul (1993), ‘Toward a counter-counterrevolution in development theory’, Annual Conference on Development Economics, 1922, pp. 15–38.CrossRefGoogle Scholar
  29. Lipsey, R. and I. Kravis (1987), Saving and Economic Growth: Is the United States Really Falling Behind? New York: The Conference Board Inc.Google Scholar
  30. Lucas, Robert E. (1988), ‘On the mechanics of economic development’, Journal of Monetary Economics, 22(1), pp. 3–42.CrossRefGoogle Scholar
  31. Marshall, Alfred (1890), Principles of Economics, London: Macmillan.Google Scholar
  32. Mehrling, Perry G. and Roger J. Sandilands (1999), Money and Growth: Selected Papers of Allyn Abbott Young, London and New York: Routledge.Google Scholar
  33. Montenegro, A. (1989), Inversion y PIB: relaciones de causalidad, Desarrollo y Sociedad (CEDE, Bogota), 24(September), pp. 53–61.Google Scholar
  34. Murphy, K. M., A. Schleifer and R. Vishny (1989a), ‘Income distribution, market size, and industrialisation’, Quarterly Journal of Economics, 104(3), pp. 537–64.Google Scholar
  35. Murphy, K. M., A. Schleifer and R. Vishny (1989b), ‘Industrialisation and the big push’, Journal of Political Economy, 97(5), pp. 1003–26.Google Scholar
  36. Myint, Hla (1977), ‘Adam Smith’s theory of international trade in the perspective of economic development’, Economica, 44, pp. 231–48.Google Scholar
  37. Myrdal, Gunnar (1957), Economic Theory and Underdeveloped Regions, Oxford: Gerard Duckworth.Google Scholar
  38. Nurkse, Ragnar (1953), Problems of Capital Formation in Underdeveloped Countries, Oxford: Basil Blackwell.Google Scholar
  39. Nurkse, Ragnar (1962), Patterns of Trade and Development, Oxford: Basil Blackwell.Google Scholar
  40. Raphael, D.D. (1985), Adam Smith, Oxford and New York: Oxford University Press.Google Scholar
  41. Reid, Gavin (1989), Classical Economic Growth, Oxford: Basil Blackwell.Google Scholar
  42. Romer, Paul (1986), ‘Increasing returns and long-run growth’, Journal of Political Economy, 94, pp. 1002–38.CrossRefGoogle Scholar
  43. Romer, Paul (1987), ‘Growth based on increasing returns due to specialisation’, American Economic Review, 77(2), pp. 56–62.Google Scholar
  44. Romer, Paul (1989), ‘Capital accumulation in the theory of long run growth’, in R. J. Barro (ed.), Modern Business Cycle Theory, Cambridge: Harvard University Press, pp. 52–127.Google Scholar
  45. Romer, Paul (1990), ‘Endogenous technological change’, Journal of Political Economy, 98(5), S71–S102.CrossRefGoogle Scholar
  46. Rosenstein-Rodan, Paul (1943), ‘Problems of industrialisation in eastern and south-eastern Europe’, Economic Journal, 53, pp. 202–11.Google Scholar
  47. Rosenstein-Rodan, Paul (1961), ‘Notes on the theory of the big push’, in H.S. Ellis and H.C. Wallaich (ed.), Economic Development of Latin America, London: Macmillan.Google Scholar
  48. Rostow, W.W. (1960), The Stages of Economic Growth, Cambridge: Cambridge University Press.Google Scholar
  49. Sandilands, Roger J. (1990), The Life and Political Economy of Lauchlin Currie, Durham and London: Duke University Press.Google Scholar
  50. Sandilands, Roger J. (1999), ‘New evidence on Allyn Young’s style and influence as a teacher’, Journal of Economic Studies, 26(6), pp. 453–80.CrossRefGoogle Scholar
  51. Sandilands, Roger J. (2000), ‘Perspectives on Allyn Young in theories of endogenous growth’, Journal of the History of Economic Thought, 22(3), pp. 309–28.CrossRefGoogle Scholar
  52. Sandilands, Roger J. (2018), ‘Albert Hirschman, Lauchlin Currie, ‘linkages’ theory, and Paul Rosenstein-Rodan’s big push’, University of Strathclyde, Department of Economics, Discussion Paper, 17(17).Google Scholar
  53. Schumpeter, Joseph A. (1954/1982), History of Economic Analysis, London: Allen and Unwin.Google Scholar
  54. Scitovsky, Tibor (1954), ‘Two concepts of external economies’, Journal of Political Economy, 62, pp. 143–51.CrossRefGoogle Scholar
  55. Shaw, G.K. (1992), ‘Policy implications of endogenous growth theory’, Economic Journal, 102(412), pp. 611–21.CrossRefGoogle Scholar
  56. Schultz, T. (1961), ‘Investment in human capital’, American Economic Review, 51(March), pp. 1–17.Google Scholar
  57. Smith, Adam (1776/1976), An Inquiry into the Nature and Causes of the Wealth of Nations, Edwin Cannan (ed.), Chicago: University of Chicago Press.Google Scholar
  58. Thirlwall, Anthony P. (1987), Nicholas Kaldor, New York: New York University Press.Google Scholar
  59. Thirlwall, Anthony P. (2003), ‘Old thoughts on new growth theory’, in N. Salvadori (ed.) Old and new Growth Theories: An Assessment, Cheltenham and Northampton: Edward Elgar.Google Scholar
  60. Veblen, Thorstein (1898), ‘Why is economics not an evolutionary science?’, Quarterly Journal of Economics, 12(4), pp. 373–97.CrossRefGoogle Scholar
  61. Young, Allyn (1928), ‘Increasing returns and economic progress’, Economic Journal, 38(152), 527–42.CrossRefGoogle Scholar
  62. Young, Allyn (1929a), ‘Economics’, Encyclopaedia Britannica 1928, London: The Encyclopaedia Britannica Company, pp. 925–32. Reproduced in Mehrling and Sandilands (1999), pp. 115–34.Google Scholar
  63. Young, Allyn (1929b), ‘Supply and demand’, Encyclopaedia Britannica 1928, London: The Encyclopaedia Britannica Company, pp. 579–80. Reproduced in Mehrling and Sandilands (1999), pp. 143–46.Google Scholar
  64. Young, Allyn (1990), ‘Nicholas Kaldor’s notes on Allyn Young’s LSE lectures 1927–29’, Journal of Economic Studies, 17(3/4), pp. 18–114.Google Scholar

Copyright information

© The Author(s) 2020

Authors and Affiliations

  • Ramesh Chandra
    • 1
  1. 1.GlasgowUK

Personalised recommendations