The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Absorptive Capacity

  • Richard S. Eckaus
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_481

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.

This is a preview of subscription content, log in to check access.

References

  1. Adler, J. 1965. Absorptive capacity and its determinants. Washington, DC: Brookings Institution.Google Scholar
  2. Dorfman, R., and R. Thoreson. 1969. Optimal patterns of growth and aid with diminishing returns to investment and consumption, Economic Development Report, vol. 142. Cambridge, MA: Development Research Group, Harvard University.Google Scholar
  3. Eckaus, R.S. 1972. Absorptive capacity as a constraint due to maturation processes. In Development and planning: Essays in honour of Paul Rosenstein-Rodan, ed. J. Bhagwati and R.S. Eckaus. Cambridge, MA: MIT Press.Google Scholar
  4. Eckaus, R.S., and K.S. Parikh. 1968. Planning for growth. Cambridge, MA: MIT Press.Google Scholar
  5. Economic Commission for Asia and the Far East (ECAFE). 1960. Programming techniques for economic development. Bangkok: United Nations.Google Scholar
  6. Horvath, B. 1958. The optimum rate of investment. Economic Journal 68: 747–767.CrossRefGoogle Scholar
  7. Kendrick, D.A., and L.J. Taylor. 1969. A dynamic nonlinear planning model for Korea. In Practical approaches to development planning, ed. I. Adelman. Baltimore: Johns Hopkins Press.Google Scholar
  8. Keynes, J.M. 1936. The general theory of employment, interest and money. London: Macmillan.Google Scholar
  9. Lucas, R. 1967. Adjustment costs and the theory of supply. Journal of Political Economy 75: 321–334.CrossRefGoogle Scholar
  10. Marris, R. 1970. Can we measure the need for development assistance? Economic Journal 80: 650–668.CrossRefGoogle Scholar
  11. Penrose, E. 1959. The theory of the growth of the firm. Oxford: Blackwell.Google Scholar
  12. Rosenstein-Rodan, P.N. 1961. International aid for underdeveloped countries. Review of Economics and Statistics 43(2): 107–138.CrossRefGoogle Scholar
  13. Uzawa, H. 1969. Time preference and the Penrose effect in a two-class model of economic growth. Journal of Political Economy 77: 628–652.CrossRefGoogle Scholar

Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Richard S. Eckaus
    • 1
  1. 1.