Capital Formation in the Take-off

  • A. K. Cairncross
Part of the International Economic Association Series book series (IEA)

Abstract

The wise men who invited me to introduce a discussion on capital formation and its contribution to take-off have shown a flattering confidence in my gamesmanship. This fourteenth session of the conference has the misfortune to relate to a subject that is by no means foreign to the preceding twelve and overlaps with the remaining two. Of necessity, however, it has been prepared in ignorance of their contents. I can, therefore, neither avail myself of the fruits of my colleagues’ researches nor refrain from trespassing on ground already covered or about to be covered. I must plead guilty in advance to the charge of not knowing what we have been talking about. I plead guilty also to the more serious charge of not knowing what we are talking about. The concepts of capital formation and take-off are not self-explanatory and are capable of very different interpretations. In the time at my disposal, however, I must accept them in all their haziness, abstain from anything more than an interrogatory aside, and plunge almost at once into the issues of substance, hoping that the discussion will not be prevented by any shortage of working capital from taking off into sustained growth.

Keywords

Europe Income Resi Pyramid 

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Notes

  1. 1.
    Cf. S. H. Frankel, The Economic Impact on Under-developed Societies (Oxford, 1953).Google Scholar
  2. 1.
    See also the comments by E. Lundberg, ‘The Profitability of Investment’, Economic Journal, December 1959.Google Scholar
  3. 2.
    See, for example, W. B. Reddaway and A. D. Smith, ‘Progress in British Manufacturing Industries in the Period 1948–54’, Economic Journal, March 1960, andGoogle Scholar
  4. O. Aukrust, ‘Investment and Economic Growth’, Productivity Measurement Review, February 1959.Google Scholar
  5. 1.
    See, for example, H. W. Singer, ‘The Mechanics of Economic Development’, Indian Economic Review, August 1952.Google Scholar
  6. 1.
    W. W. Rostow, The Stages of Economic Growth, Cambridge, 1960, p. 37.Google Scholar
  7. 2.
    W. A. Lewis, The Theory of Economic Growth, London, 1955, p. 226.Google Scholar
  8. 1.
    O. Johannsson, ‘Economic Structure and Growth in Sweden, 1861–1953’ (paper presented to the Sixth European Conference of the International Association for Research in Income and Wealth, 1959), pp. 23–4.Google Scholar
  9. 2.
    J. Bjerke, ‘Some Aspects of Long-term Economic Growth of Norway since 1864’ (paper presented to the Sixth European Conference of the International Association for Research in Income and Wealth, 1959), p. 64.Google Scholar
  10. 2.
    See, for example, G. S. L. Tucker, Progress and Profits in British Economic Thought, Cambridge, 1959,Google Scholar
  11. T. S. Ashton, Economic Fluctuations in England 1700–1800, Oxford, 1959, andGoogle Scholar
  12. L. S. Pressnell, ‘The Rate of Interest in the Eighteenth Century’ in Studies in the Industrial Revolution: Presented to T. S. Ashton (Ed. L. S. Pressnell), London, 1960.Google Scholar
  13. 1.
    See, for example, J. Tinbergen, Design for Development, I.B.R.D., p. 74, 1957, andGoogle Scholar
  14. G. M. Meier and R. E. Baldwin, Economic Development, New York, 1957, p. 340, for estimates within this wide range.Google Scholar
  15. 1.
    See, for example, Henry Hamilton, ‘Economic Growth in Scotland, 1720–1770’, Scottish Journal of Political Economy, June 1959, for the part played by the government in road-building.Google Scholar

Copyright information

© International Economic Association 1963

Authors and Affiliations

  • A. K. Cairncross
    • 1
  1. 1.University of GlasgowUK

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