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The Problem Under Review
THE SEARCH FOR AN OPERATIONAL DEFINITION
THE ABSORPTIVE CAPACITY CONSTRAINTS 5 3
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absorptive capacity concept Africa aggregate absorptive capacity aggregate investment programme amount of capital analysis average calculation capital absorptive capacity capital formation capital productively cash flow Chapter Chenery component constraints cost of capital cut-off criterion cut-off rate demand developing countries domestic capital formation domestic savings Economic Development economic growth Economic Journal economies of scale effects efficiency equilibrium price expenditure export factors of production financial resources foreign capital foreign exchange foreign technical assistance GDCF Gross Domestic Capital gross domestic product growth rates Gulhati Horvat IBRD ICOR implementation important incentives income increase incremental incremental capital-output ratio industrialized countries infrastructure investment cluster investment opportunities investment projects labour limited marginal rate national financial profitability operational optimum output period policy measures problem purchasing power rate of return regional co-operation restrictions sector shadow prices shortage skills social subsidies surplus tariff trade UNCTAD United Nations W.W. Rostow York