Long Term Growth of A Developing Economy

Abstract

Most growth models that have recently appeared are based on assumptions which are more relevant to the developed economies. Two important aspects of these economies are: 1) savings tend to approach a more or less 1) stable rate and (2) the productive structure tends to be settled on a more or less fixed technology2). If there have been any movements in the savings rate and capital output ratios of the developed countries, they have been downward, Under these conditions it is not surprising to find that in most of the models that have appeared, the rate of savings and the capital-output ratios have been assumed to be constant. And these assumptions will not be unjustified in the context of the developed economies with the characteristics mentioned above.