英语论文网

bsence of technological change; and L (t) as the available supply of labour at time (t). The right hand side of equation (4) shows the compound rate of the growth of labour force from period o to period t. Alternatively equation (4) can be regarded as a supply curve of labour. This says that the exponential growing labour force is offered for employment completely inelastically. The labour supply curve is vertical line, which shifts to the right in time as the labour force grows according to (4). Then the real wage adjusts so that all available labour is employed, and thre marginal productivity equation determines the wage rate which will actually rule.

By putting equation (4) into (3). Solow gives this equation

K=sF (K, Locnt) ---------------- (5)

This referred to as determining the time path of capital accumulation

EMPIRICAL LITERATURE

There have been many discussions on the topic been researched. Some of the thought and discussions and scholarlic insight into the subject matter will be examined in this section.

Every nation wants to grow and also develop so as to bring about economic independence. There has been various policies recommendations from various writers to combat unemployment in various aspects and facet of the economy.

The stage of growth model development was advocated by an American economic/historian W.W. Rostow (1960). He put forward that it is possible to identify all societies, their economic dimensions, as lying within one of five categories: the traditional society, the preconditions for take-off into self- sustaining growth, the take-off, the drive to maturity and the age of high mass consumption.

He then asserted that one of the principal strategies of development necessary for take-off was the mobilization of domestic and foreign savings only are sufficient for growth. This view assumes that domestic and foreign savings only are sufficient for growth. The theory was supported by Harod Domar model (1939; 1946) which demonstrated that countries with higher savings ratio are expected to grow faster than those with lower rates and that the main obstacle to or constraint on development is the relatively low level of new capital formation in most developing countries.

Based on Adedoyin (2012) deduction, he deduced that the in practice it has been observed that the mechanism of development embodied in the theory of stages of growth do not always work. This is not because savings and investment are not necessary condition for growth but because they are not sufficient condition. Savings and investment will propel growth if and only if such other conditions as integrated commodity and developed financial (money and capital) markets, highly developed infrastructure, well trained and and educated workforce, the motivation to succeed, and pan efficient government bureaucracy e.t.c. are prevalent.

The proponents of the structural change model instead focused on the mechanism by which under developed countries transform their economies from a heavy emphasis on the traditional subsistence agriculture to a more modern, highly sophisticated, more urbanized and more industrially diverse manufacturing and service economy.

The various upcoming programs have all also contributed to the boosting of employment and also having a multiplier effect on the