Question

How does the balanced growth theory differ from that of unbalanced growth?

Answer 1

1.Balanced theory requires use of large amount of capital whereas unbalanced growth theory doesnt need much capital.

2.Balanced growth is basically useful in long run. it is long term strategy whereas unbalanced growth theory is short term strategy

3.Balanced growth theory suggests that investment should be made parrallely in all sectors of society whereas according to unbalanced growth theory investment should be made in selected sectors rather than simultaneously in all sectors of the economy.