Abstract
The idea that the productivity of new investment is a declining function of the rate of investment – the concept labelled ‘absorptive capacity’ – has attracted attention in development economics because of its implications as a constraint on growth.
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This chapter was originally published in The New Palgrave: A Dictionary of Economics, 1st edition, 1987. Edited by John Eatwell, Murray Milgate and Peter Newman
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References
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Eckaus, R.S. (1987). Absorptive Capacity. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95121-5_481-1
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DOI: https://doi.org/10.1057/978-1-349-95121-5_481-1
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Publisher Name: Palgrave Macmillan, London
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