Professional Documents
Culture Documents
Population
that relate to efficiency in production.
Students will also get to distinguish various
growth theories, and see how these theories
were successfully applied in the development
effort of countries in the Asian Region.
Basic Concepts
• Module Goals
#05
What measures can the poorer countries take to accelerate their growth to
bring their standards of living more in line with the rest of the world?
Learning Goals
Economic Development in Asia
Lesson 5 – Growth and the Asian Experience
Introduction
• Why do economies grow?
An inefficient organization
operates with long delays and
high costs, while an efficient
organization is focused, meets
deadlines, and performs within
budget.
Technical Progress:
Embodied Vs Disembodied
Embodied Technical Progress: improved
technology which is exploited by investing in
new equipment. New technical changes made
are embodied in the equipment.
H
Embodies technical progress has something to do with
the changing nature of the inputs into production
process.
These would include more highly skilled and computer-
literate workers.
Disembodied Technical Progress: improved
technology which allows increase in the output
produced from given inputs without investing in
new equipment.
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Components of Income and Growth
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Components of Income and Growth
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Components of Income and Growth
a production function gives the
technological relation between quantities of
physical inputs and quantities of output of
goods. The production function is one of
the key concepts of mainstream
neoclassical theories, used to define
marginal product and to distinguish
allocative efficiency, a key focus of
economics. One important purpose of the
production function is to address allocative
efficiency in the use of factor inputs in
production and the resulting distribution of
income to those factors, while abstracting
away from the technological problems of
achieving technical efficiency, as an
engineer or professional manager might
understand it.
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Components of Income and Growth
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Components of Income and Growth
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Components of Income and Growth
H
Growth Theories
• Keynesian Theory/Harrod-Domar Model
• Solow Model
• Structuralist Approaches
Patiala, India
Policy Environment Before the
Transition to Rapid Growth