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Technical Progress

  • Chapter
Introduction to the Theory of Economic Growth

Part of the book series: Lecture Notes in Economics and Mathematical Systems ((LNE,volume 205))

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Abstract

So far we have considered only two factors which contribute to economic growth — capital accumulation and growth of the labor force. But growth is possible because of technical changes in the production processes. In fact several studies have found that the observed increases in per capita income cannot be accounted for by capital formation alone. Change in productivity is the major explanation1. Technical progress is said to occur if the production function shifts upwards over time; that is, more output can be obtained with the same amounts of labor and capital. Such a shift may be due to innovations, education of the labor force or other factors. In this chapter we study the effects of technical progress on the long run behavior of an economy.

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Authors and Affiliations

  1. Department of Economics, University of California, San Diego, D-008, La Jolla, CA, 92093, USA

    Prof. Ramu Ramanathan

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  1. Prof. Ramu Ramanathan
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© 1982 Springer-Verlag Berlin Heidelberg

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Ramanathan, R. (1982). Technical Progress. In: Introduction to the Theory of Economic Growth. Lecture Notes in Economics and Mathematical Systems, vol 205. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-45541-4_4

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  • DOI: https://doi.org/10.1007/978-3-642-45541-4_4

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-540-11943-2

  • Online ISBN: 978-3-642-45541-4

  • eBook Packages: Springer Book Archive

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