Foreign trade aspects of capital formation

Abstract

Imports were given a treatment as a leakage similar to a savings lea¬kage in income-multiplier analysis. Little attention was paid to the role of imports as a factor either facilitating or limiting economic development. Imports of capital goods and intermediate materials used as input in pro¬duction called attention in economic literature some years ago. This study deals only with capital goods imports and espe¬cially with the import-content of investment in the course of economic deve¬lopment measured by per capital income. Capital, labor and natural resour¬ces are the determining factors of production and economic growth.