ABSTRACT
This chapter reviews Robinson’s theory of economic growth as based on a two-sector model with integrated sectors in which capitalists’ “animal spirits” and its interaction with the profits realisation mechanism determines the maximum attainable rate of growth. Her views on the factors constraining this rate of growth are discussed, with special attention to the impact of labour scarcity and technical progress. After the introduction of a monopolisation tendency in her model, Robinson shows how underconsumption, capacity underutilisation, and economic stagnation can develop.
