A choice between alternative techniques of production is a major problem in the planning for developing countries. This is because a particular choice of technique of production affects not only the magnitude of employment but also the rate of economic growth. Several alternative techniques of production are available to produce a commodity and these differ with regard to the amount [...]
How to allocate investment resources among competing industries or projects is a central issue facing all economies? However, the allocation of resources in developing countries assumes a great significance as capital is very scarce while the needs and aspirations of the people are very large. There is need for investment in agriculture to produce more food grains to feed the [...]
In this article we will critically examine marginal reinvestment quotient criterion put forward by galenson and leibenstein and growing points criterion. Marginal Reinvestment Quotient Criterion: Marginal reinvestment quotient criterion has been suggested by Galenson and Leibenstein which seeks to maximise investible surplus per worker so that it can be reinvested to maximise rate of growth of the economy. It aims [...]