Editing Economic growth (section)

===Classical growth theory===
In classical ([[David Ricardo|Ricardian]]) economics, the theory of production and the theory of growth are based on the theory of sustainability and law of variable proportions, whereby increasing either of the [[factors of production]] (labor or capital), while holding the other constant and assuming no technological change, will increase output, but at a diminishing rate that eventually will approach zero. These concepts have their origins in [[Thomas Malthus]]’s theorizing about agriculture. Malthus's examples included the number of seeds harvested relative to the number of seeds planted (capital) on a plot of land and the size of the harvest from a plot of land versus the number of workers employed.{{sfn|Bjork|1999|pp=297–298}} (See also [[Diminishing returns]])

Criticisms of classical growth theory are that technology, an important factor in economic growth, is held constant and that [[economies of scale]] are ignored.{{sfn|Bjork|1999|p=298}}

One popular theory in the 1940s was the [[big push model]], which suggested that countries needed to jump from one stage of development to another through a [[virtuous cycle]], in which large investments in infrastructure and education coupled with private investments would move the economy to a more productive stage, breaking free from economic paradigms appropriate to a lower productivity stage.<ref>[[Paul Rosenstein-Rodan]] {{specify|date=November 2010}}</ref> The idea was revived and formulated rigorously, in the late 1980s by [[Kevin Murphy (economist)|Kevin Murphy]], [[Andrei Shleifer]] and [[Robert Vishny]].<ref>{{cite journal|last1=Murphy|first1=Kevin M.|last2=Shleifer |first2=Andrei|last3=Vishny|first3=Robert W.|year=1989|title=Industrialization and the Big Push|journal=[[Journal of Political Economy]] |volume=97|issue=5|pages=1003–1026|doi=10.1086/261641|citeseerx=10.1.1.538.3040 |s2cid=222424224}}</ref>