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Biases Towards Capital-Intense Techniques and the Employment Problem in LDCs

Oli Hawrylyshyn

Working Paper from Economics Department, Queen's University

Abstract: The employment problem in developing countries has been explained by technological determinism or factor price distortion. This paper proposes a third view: bias to capital intense methods. These stem from non-economic preferences of engineers, designers, managers, and policymakers. A fourth bias, consumer-choice is discusses and considered less significant. Policy implications are that direct action to break the bias and stimulate labour-intensive techniques is needed.

Pages: 27
Date: 1975
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Persistent link: https://EconPapers.repec.org/RePEc:qed:wpaper:187

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