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The Contribution of Capital to Economic Growth

  • John C. Carrington
  • George T. Edwards
Chapter
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Abstract

The role of capital formation in assisting economic development is so much a part of the natural background to the modern economy, that it seems quite possible to under-rate its relative importance. One author, in a basic textbook on economics, reminds us that:

… the Industrial Revolution was a change in industrial method, from hand-work to work done by machines driven by power, and in industrial organisation, from work at home to work in factories1.

Keywords

Capital Stock Capital Consumption Capital Formation Capital Asset Income Share 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Notes

  1. 1.
    G. W. Southgate, English Economic History, Dent, 1958, p. 115.Google Scholar
  2. 3.
    John Hicks, A Theory of Economic History, Oxford University Press, 1969, p. 145.Google Scholar
  3. 4.
    Paul A. Samuelson, Economics, McGraw-Hill, 1967, p. 48.Google Scholar
  4. 5.
    Adam Smith, An Inquiry into the Nature and Causes of the Wealth of Nations, Dent, 1910.Google Scholar
  5. 7.
    T. R. Malthus, An Essay on the Principle of Population as it Affects the Future Improvement of Society, London, 1798; reprinted in a Pelican Books edition, edited by Antony Flew, 1970.Google Scholar
  6. 8.
    See, for example, Donella H. and Dennis L. Meadows and others, The Limits to Growth, Earth Island Ltd., London, 1972;Google Scholar
  7. W. Beckerman, In Defence of Economic Growth, Jonathan Cape, London, 1974, especially Chapter 6 (‘Resources for Growth’, pp. 215–40).Google Scholar
  8. 9.
    Karl Marx, Estranged Labour and Capital, 1844,Google Scholar
  9. reprinted in A Critique of Economic Theory, ed. E. K. Hunt and J. G. Schwartz, Penguin Books, 1972.Google Scholar
  10. 12.
    See J. B. Say, ‘Treatise on Political Economy or the Production, Distribution and Consumption of Wealth’, translated by C. R. Prinsep from the 4th French Edition (Longman, 1821).Google Scholar
  11. 13.
    Michael Stewart, Keynes and After, Penguin Books, 1969.Google Scholar
  12. 14.
    See, for example, Part II (‘Inflation and Deflation’) of J. M. Keynes, Essays in Persuasion, first published 1931, re-issued by Hart-Davis, 1951.Google Scholar
  13. 15.
    J. M. Keynes’s General Theory of Employment, Interest and Money was first published in 1936.Google Scholar
  14. 16.
    R. F. Harrod, Towards a Dynamic Economics, Macmillan, London, 1948.Google Scholar
  15. 17.
    E. D. Domar, Essays in the Theory of Economic Growth, Oxford University Press, 1947.Google Scholar
  16. 18.
    J. A. Schumpeter, Business Cycles: A Theoretical, Historical and Statistical Analysis of the Capitalist Process, McGraw-Hill, New York and London, 1939.Google Scholar
  17. 19.
    B. Higgins, Economic Development, Constable, 1959, p. 212.Google Scholar
  18. 20.
    Edward F. Denison, Why Growth Rates Differ: Post-War Experience in Nine Western Countries, Brookings Institution, 1967.Google Scholar
  19. 21.
    J. W. Kendrick, Productivity Trends in the United States, National Bureau of Economic Research, Princeton, USA, 1961.Google Scholar
  20. 23.
    Maurice Dobb, ‘The Trend of Modern Economics’, in A Critique of Economic Theory, ed. E. K. Hunt and J. G. Swartz, Penguin Books, 1972, p. 48.Google Scholar
  21. 29.
    J. Meade, A Neo-Classical Theory of Economic Growth, Allen & Unwin, 1961.Google Scholar
  22. 32.
    J. B. Clark, ‘Distribution as determined by a law of rent’, Quarterly Journal of Economics, Vol. 5, no. 3 (1891) (Quoted by Joan Robinson, op. cit.).Google Scholar
  23. 36.
    Source, C. E. Ferguson, The Neoclassical Theory of Production and Distribution, Cambridge University Press, 1969.CrossRefGoogle Scholar
  24. 44.
    Sir Sidney Green told the TUC (see the report in the Guardian, 8 Sep. 1972) that almost two-thirds of British plant and machinery was over 10 years old, and a substantial proportion of it was over 20 years old.Google Scholar
  25. 45.
    See, for example, Erik Lundberg’s Instability and Economic Growth, Yale University Press, 1968, where this problem is outlined for the UK, Sweden, Holland, Japan, the USA and Canada.Google Scholar
  26. 64.
    Angus Maddison, Economic Growth in the West, Allen & Unwin, 1964, p. 75.Google Scholar

Copyright information

© J. C. Carrington and G. T. Edwards 1979

Authors and Affiliations

  • John C. Carrington
  • George T. Edwards

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