The New Palgrave Dictionary of Economics

Living Edition
| Editors: Matias Vernengo, Esteban Perez Caldentey, Barkley J. Rosser Jr

Absorptive Capacity

Living reference work entry
First Online:
DOI: https://doi.org/10.1057/978-1-349-95121-5_481-1
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Abstract

The idea that the productivity of new investment is a declining function of the rate of investment – the concept labelled ‘absorptive capacity’ – has attracted attention in development economics because of its implications as a constraint on growth.

Keywords

Absorptive Capacity Adjustment Cost Aggregate Consumption Efficient Investment Aggregate Utility 
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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Authors and Affiliations

  1. 1.