1044 PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 
~§ 
The growth of the Underdeveloped Areas turns out to be 
described by a combination of two exponential terms. The 
first reflects the effects of internal savings, the second the con- 
tribution of investment financed through capital imports. Ac- 
cordingly the growth rate, A,, of the first component depends 
on the magnitude of the domestic savings and capital-output 
ratios while the second term grown at the same rate as the 
GNP of the Developed Areas (1). 
Equations (4) and (9) permit us to project forward the 
growth of both groups of countries provided their base year 
levels of their respective GNP’s, Savings, Growth Rates, as 
well as the initial magnitude of the interregional capital transfer 
is given. The corresponding values of the constants entering 
into the two growth functions can be computed from the follow- 
ing formulae: 
pL Le) IL) Le 
TY 0) Von PT ¥.0) Ya0)7.(0) 
_0) 
à, = À — Yalo) _ . __[L(0) — H(0)] Ya(o) _ 
BL Yo) MO) MST Lo) Lo) 
H(o) | _ 
TO +o) 
These relations are obtained by inserting the given base 
year values of the variables in the appropriate Investment 
Functions. Accelerations Relationships and Growth Functions. 
(!) If the ratio of the saving to the capital coefficient in the Developed 
and Underdeveloped regions happens to be equal. the solution of the 
differential equation (8) is reduced to: 
TIN 
(0-2) 
Y, (4) - 
10) 
nf 
à - 
SU 
h, 
2 
b, 
that is, the growth rates of bnth groups of countries would in this case 
he reaual. 
13]. Leontief - pag. 6