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Absorptive Capacity

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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.

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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  1. http://link.springer.com/referencework/10.1007/978-1-349-95121-5

    Richard S. Eckaus

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  1. Richard S. Eckaus
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    © 1987 The Author(s)

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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

    • Online ISBN: 978-1-349-95121-5

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