In this book, an explanation of insufficient capital accumulation in a developing economy is offered in terms of the distribution of assets and income. It is shown that given an unequal distribution of assets and income and the resulting market imperfections, especially credit market imperfection, in many developing countries, the income groups which can and in fact do save may not use their savings for capital accumulation.


Conventional analyses Alternative explanation Distribution of assets and income Market imperfection 


  1. Bhaduri, A. (1983). The Economic Structure of Backward Agriculture. Cambridge, MA: Academic Press.Google Scholar
  2. Leibenstein, H. (1957). Economic Backwardness. New York: Wiley.Google Scholar

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© The Author(s) 2018

Authors and Affiliations

  • Asim K. Dasgupta
    • 1
    • 2
  1. 1.Former Finance MinisterWest BengalIndia
  2. 2.Former Professor of EconomicsCalcutta UniversityWest BengalIndia

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