Skip to main content
SpringerLink
Log in

Absorptive Capacity

  • Reference work entry
  • First Online:
The New Palgrave Dictionary of Economics

  • 354 Accesses

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 is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 6,499.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 8,499.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Adler, J. 1965. Absorptive capacity and its determinants. Washington, DC: Brookings Institution.

    Google Scholar 

  • Dorfman, R., and R. Thoreson. 1969. Optimal patterns of growth and aid with diminishing returns to investment and consumption, Economic Development Report, vol. 142. Cambridge, MA: Development Research Group, Harvard University.

    Google Scholar 

  • Eckaus, R.S. 1972. Absorptive capacity as a constraint due to maturation processes. In Development and planning: Essays in honour of Paul Rosenstein-Rodan, ed. J. Bhagwati and R.S. Eckaus. Cambridge, MA: MIT Press.

    Google Scholar 

  • Eckaus, R.S., and K.S. Parikh. 1968. Planning for growth. Cambridge, MA: MIT Press.

    Google Scholar 

  • Economic Commission for Asia and the Far East (ECAFE). 1960. Programming techniques for economic development. Bangkok: United Nations.

    Google Scholar 

  • Horvath, B. 1958. The optimum rate of investment. Economic Journal 68: 747–767.

    Article  Google Scholar 

  • Kendrick, D.A., and L.J. Taylor. 1969. A dynamic nonlinear planning model for Korea. In Practical approaches to development planning, ed. I. Adelman. Baltimore: Johns Hopkins Press.

    Google Scholar 

  • Keynes, J.M. 1936. The general theory of employment, interest and money. London: Macmillan.

    Google Scholar 

  • Lucas, R. 1967. Adjustment costs and the theory of supply. Journal of Political Economy 75: 321–334.

    Article  Google Scholar 

  • Marris, R. 1970. Can we measure the need for development assistance? Economic Journal 80: 650–668.

    Article  Google Scholar 

  • Penrose, E. 1959. The theory of the growth of the firm. Oxford: Blackwell.

    Google Scholar 

  • Rosenstein-Rodan, P.N. 1961. International aid for underdeveloped countries. Review of Economics and Statistics 43(2): 107–138.

    Article  Google Scholar 

  • Uzawa, H. 1969. Time preference and the Penrose effect in a two-class model of economic growth. Journal of Political Economy 77: 628–652.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

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

    Richard S. Eckaus

Authors
  1. Richard S. Eckaus
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Copyright information

© 2018 Macmillan Publishers Ltd.

About this entry

Check for updates. Verify currency and authenticity via CrossMark

Cite this entry

Eckaus, R.S. (2018). Absorptive Capacity. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_481

Download citation

Publish with us

Policies and ethics

Search

Navigation