What are rostowís policy implications, Business Economics

What are Rostowís policy implications?

• LDCs (Less Developed Countries) require aid.

The development procedure can stall at the Take Off stage for be short of savings. 15 to 20 percent of GDP needs. When savings = 5 percent then aid/loan = 10 to 15 percent plugs savings spaces. Resultant investment shifts the country to stage four as well as self-generate economic growth.

The Harrod-Domar model describes the economic mechanism by that high investment leads to elevated growth.

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