Economic Growth

Abstract

Recession, rising oil prices and changes in the pattern and organisation of international lending have created or accentuated such circumstances in a large number of countries. So it is reasonable to suppose that there will be renewed interest in inward-looking strategies in coming years. The four-sector model formulated by K. N. Raj and A. K. Sen (Raj and Sen, 1961) has a number of characteristics in common with the Fel'dmanMahalanobis model, but apart from some early comments (Parry Lewis, 1962; Rosen, 1962; Bhagwati, 1962; Scott, 1962) and an elegant generalisation of the approach to alternative strategies by Atkinson (Atkinson, 1969), it has not been much discussed. This is a pity because the Raj-Sen model is especially well adapted for analysing 'inward-looking' strategies, and was indeed drawn up with that objective. This paper re-examines and extends the Raj-Sen model with two main