ABSTRACT
Economic growth depends ultimately on the input of productive resources and the efficiency with which they are used. Resource input and efficiency are both affected (a) by the spontaneous action of private forces in the economy, (b) by government policy. In order to clarify their impact on growth it is useful to set out a simple model in which their relationship and relative importance is made explicit. Our model, like most others, is only a crude approximation to reality because on several important points the quantification is based on judgment rather than evidence, and in the real world there is a more complex interdependence between causal factors than we can hope to numerate. The novel feature of our model is the distinction between autonomous and policy-induced growth. Previous models of economic growth have not set out to do this for developing countries.
