Study week on the econometric approach to development planning

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Monograph

Identifikator:: 1824422792

URN:: urn:nbn:de:zbw-retromon-217476

Document type:: Monograph

Title:: Study week on the econometric approach to development planning

Place of publication:: Amsterdam [u.a.]

Publisher:: North-Holland Publ. Co. [u.a.]

Year of publication:: 1965

Scope:: XLVII, 1259 S.; graph. Darst.

Digitisation:: 2022

Collection:: Economics Books

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Document type:: Monograph

Structure type:: Chapter

Title:: The role of capital in economic development / Maurice Allais, Ecole Nationale Supérieure de Mines Paris - France

Collection:: Economics Books

SEMAINE D'ÉTUDE SUR LE ROLE DE L’ANALYSE ECONOMETRIQUE ETC &_3 which nevertheless on the basis of the information available at the present time appears to be verified by the available statis- tical data (}). As we have seen the economic significance of this relation is that the value in wage units of reproducible capital does not depend on the more or less capitalistic (i.e. more or less round- about) structure of the production process, as described by the coefficient ®. The value in wage units of available capital is independent of the rate of interest ¢ and of the rate of growth p. This means that, evaluated in hours of work, the figures for capital available per worker in so-called under-developed economies should be comparable to the figures of the advanced economies (1). The implication of this is that the accumulated capital of the advanced economies does not have any greater weight for them than that represented for under-developed economies by the capital they have available. This finding shows that in formulating development policy, it may be advantageous to adopt the most efficient production techniques as quickly as possible. In this case, an attempt should be made to keep interest rates so low that more round about techniques can be applied. However, it follows clearly from the preceding that the more or less capitalistic structure of the production process (O smaller or greater) does not suffice to explain recorded differences in productivity levels. In reality, the explanation of the enormous differences in productivity observed as between the west and underdeveloped countries ,half of the world’s population has an income less than 1/20th that the average American (?) has much less to do with below standard values of the capital-output ratio than with: a) differences in per capita availability of natural resources. (M See ArLLAIS (1960 A), $ 25. Arrais (1961 B) vol. T (n. 8), pp. 22-24 and vol. II (n. 7), pp. 39-80. rr} 1 .. 1 Allais - pag. 203

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