Traditional Culture Encyclopedia - Traditional stories - How does Schultz analyze the theory of economic growth?
How does Schultz analyze the theory of economic growth?
Schultz's second major interest is the theory of economic growth. Through his writings, he explained to people how to understand economic growth and how to promote it. In his report entitled "Food in the World" (1945) prepared for a representative meeting, he systematically analyzed the relationship between various factors that affect demand (such as population, income, demand elasticity, etc.). ) and various factors affecting supply (such as the technical level of labor force, the technical progress of agricultural population and the investment rate, etc.). ). Among the achievements of Schultz's research on this subject, the most influential book is "Transforming Traditional Agriculture" published by 1964. The main points he holds in the book are: first, the traditional farmers' utilization of resources is effective; Second, the marginal productivity of agricultural labor is not equal to zero; Third, if the new mode of production is more advantageous than the old one, even the farmers with low incomes are willing to abandon the old one and adopt the advanced mode of production. He drew a conclusion from this series of viewpoints: developing agriculture will not affect the economic growth rate.
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