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...

This paper examines the implementation of a Big Push policy in Northern Honduras. Big Push theory emphasizes that pro-active development policy could potentially lead to a Pareto-superior equilibrium. Market forces may not lead to the adoption of increasing-returns production processes, if...

This paper develops model of growth in an economy where the capital stock is rationed across labour inputs, as in the dual, or segmented, labour market literature on developing economies. In this economy, the increased use of labour in the formal sectors can sustain high marginal and average...

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...

An extension of the Uzawa-Lucas endogenous growth model is discussed which incorporates diminishing returns to human capital and unskilled labour in aggregate labour inputs. This extension is important in the context of developing economies, due to their abundance of unskilled labour, relative...