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- W4239495217 abstract "A linkage (or linkage effect) was originally defined as a characteristic, more or less compelling sequence of investment decisions occurring in the course of industrialization and, more generally, of economic development. In putting forward the concept in The Strategy of Economic Development (1958, ch. 6), A.O. Hirschman criticized the then dominant Harrod–Domar growth model in which growth depends only on the capital–output ratio and on the availability of capital. More generally, the concept arose from a perspective contesting the conventional representation of an economy where natural resources, factors of production, and entrepreneurship are all available in given amounts and need only be efficiently allocated to various activities for best results. Hirschman contended instead that ‘development depends not so much on finding optimal combinations for given resources and factors of production as on calling forth and enlisting for development purposes resources and abilities that are hidden, scattered, or badly utilized’ (1958, p. 5). This view led to a search for various inducing and mobilizing mechanisms. The resulting ‘strategy of unbalanced growth’ values investment decisions not only because of their immediate contribution to output, but because of the larger or smaller impulse such decisions are likely to impart to further investment, that is, because of their linkages. The strategy has important implications for investment planning: it proposes that dynamic considerations, based on the linkages, should be allowed to complement the criterion of static efficiency." @default.
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- W4239495217 date "1987-01-01" @default.
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- W4239495217 title "Linkages" @default.
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- W4239495217 doi "https://doi.org/10.1057/978-1-349-95121-5_916-1" @default.
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