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NEUMANN MODEL [1 record]

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Record 1 1981-01-23

English

Subject field(s)
  • Economic Doctrines, Systems and Policies
OBS

Because development theory, for countries like India and the United States, is preoccupied with the concept of "balanced growth", the Neumann model is of considerable interest. It is particularly relevant to the case where an industrial sector in a poor country finds it can get an unlimited supply of laborers from the rural sector at the same wage cost in terms of subsistence; needing little land, the industrial sector can "take off" and grow at a constant Neumann-percentage rate per year, provided it can produce the capital goods needed to match the new labor or can be helped by imports from foreign lenders, aiders, or exporters.

French

Domaine(s)
  • Doctrines, systèmes et politiques économiques

Spanish

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