ABSTRACT
Investigating the sources of growth of production and consumption initially comes down to identification of the constraints working upon them at a given moment. In dealing with a long-term context, as we are here, we are forced to agree with Ricardo's conclusion that the limiting factors are to be found in the nature of production possibilities: the endowment of non-produced primary factors; the availability of capital - that is all the means of production which may be produced but which require prior accumulation; and the efficiency with which they are employed. This chapter will be concerned with determinants of the potential level of output, assuming the factors are fully employed. The problem of co-ordinating potential and realised production is related to the regulation of growth, which will be studied further on.
