This paper develops a method for interpreting growth accounting studies in terms of the neoclassical growth model. In particular it shows that the growth accounting contribution of capital reflects the distance of the economy form its steady state income level. The method is applied to studies...

An important stylized fact of economic growth is that the rate of return to capital is relatively constant across countries and time. This paper gives an explanation for this using a model of growth in a developing economy that has dualistic structure. Three conditions are derivedm each of which...

A model of growth in a developing economy is presented, extending previous work by Lucas (1988) and Dexit (1968). The model distinguishes betwwen unskilled labour and Human capital inputs and incorporates and elastic supply curve for unskilled labour.