The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Absorptive Capacity

  • Richard S. Eckaus
Reference work entry


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.

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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Richard S. Eckaus
    • 1
  1. 1.