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Absorptive Capacity

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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.

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  • DOI: 10.1057/978-1-349-95189-5_481
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Eckaus, R.S. (2018). Absorptive Capacity. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_481

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