Abstract
The role of capital formation in assisting economic development is so much a part of the natural background to the modern economy, that it seems quite possible to under-rate its relative importance. One author, in a basic textbook on economics, reminds us that:
… the Industrial Revolution was a change in industrial method, from hand-work to work done by machines driven by power, and in industrial organisation, from work at home to work in factories1.
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Notes
G. W. Southgate, English Economic History, Dent, 1958, p. 115.
John Hicks, A Theory of Economic History, Oxford University Press, 1969, p. 145.
Paul A. Samuelson, Economics, McGraw-Hill, 1967, p. 48.
Adam Smith, An Inquiry into the Nature and Causes of the Wealth of Nations, Dent, 1910.
T. R. Malthus, An Essay on the Principle of Population as it Affects the Future Improvement of Society, London, 1798; reprinted in a Pelican Books edition, edited by Antony Flew, 1970.
See, for example, Donella H. and Dennis L. Meadows and others, The Limits to Growth, Earth Island Ltd., London, 1972;
W. Beckerman, In Defence of Economic Growth, Jonathan Cape, London, 1974, especially Chapter 6 (‘Resources for Growth’, pp. 215–40).
Karl Marx, Estranged Labour and Capital, 1844,
reprinted in A Critique of Economic Theory, ed. E. K. Hunt and J. G. Schwartz, Penguin Books, 1972.
See J. B. Say, ‘Treatise on Political Economy or the Production, Distribution and Consumption of Wealth’, translated by C. R. Prinsep from the 4th French Edition (Longman, 1821).
Michael Stewart, Keynes and After, Penguin Books, 1969.
See, for example, Part II (‘Inflation and Deflation’) of J. M. Keynes, Essays in Persuasion, first published 1931, re-issued by Hart-Davis, 1951.
J. M. Keynes’s General Theory of Employment, Interest and Money was first published in 1936.
R. F. Harrod, Towards a Dynamic Economics, Macmillan, London, 1948.
E. D. Domar, Essays in the Theory of Economic Growth, Oxford University Press, 1947.
J. A. Schumpeter, Business Cycles: A Theoretical, Historical and Statistical Analysis of the Capitalist Process, McGraw-Hill, New York and London, 1939.
B. Higgins, Economic Development, Constable, 1959, p. 212.
Edward F. Denison, Why Growth Rates Differ: Post-War Experience in Nine Western Countries, Brookings Institution, 1967.
J. W. Kendrick, Productivity Trends in the United States, National Bureau of Economic Research, Princeton, USA, 1961.
Maurice Dobb, ‘The Trend of Modern Economics’, in A Critique of Economic Theory, ed. E. K. Hunt and J. G. Swartz, Penguin Books, 1972, p. 48.
J. Meade, A Neo-Classical Theory of Economic Growth, Allen & Unwin, 1961.
J. B. Clark, ‘Distribution as determined by a law of rent’, Quarterly Journal of Economics, Vol. 5, no. 3 (1891) (Quoted by Joan Robinson, op. cit.).
Source, C. E. Ferguson, The Neoclassical Theory of Production and Distribution, Cambridge University Press, 1969.
Sir Sidney Green told the TUC (see the report in the Guardian, 8 Sep. 1972) that almost two-thirds of British plant and machinery was over 10 years old, and a substantial proportion of it was over 20 years old.
See, for example, Erik Lundberg’s Instability and Economic Growth, Yale University Press, 1968, where this problem is outlined for the UK, Sweden, Holland, Japan, the USA and Canada.
Angus Maddison, Economic Growth in the West, Allen & Unwin, 1964, p. 75.
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© 1979 J. C. Carrington and G. T. Edwards
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Carrington, J.C., Edwards, G.T. (1979). The Contribution of Capital to Economic Growth. In: Financing Industrial Investment. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-04021-6_3
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DOI: https://doi.org/10.1007/978-1-349-04021-6_3
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