Kaldor's technical progress theory

Kaldor's technical progress theory suggests that economic growth is driven by technological advancements. It argues that as production techniques improve, firms become more efficient and can produce more goods with the same resources. This efficiency leads to higher productivity, increased output, and ultimately economic growth. Kaldor emphasized the role of continuous innovation and the importance of investment in research and development, suggesting that industries that embrace technological change can enhance their competitiveness and drive overall economic progress. In essence, technological progress fuels the engine of economic development.