The take off in the life of a society is a state, when growth becomes its normal condition. The take off is infect an industrial revolution which causes radical changes in the methods of production, and the forces of modernization prevails everywhere.
The take off period is supposed to be short, lasting for about two decades which is obvious from the history of the developed countries. The following are the conditions.
1: the first and essential condition for take off is a rise in the rate of productive investment from say five percent or less to over ten percent of national income. In other words the percentage rate of investment must be five or six times greater than the percentage increase in population.
2: The second condition for take off is the development of one or more leading sectors in the economy. According to Rostow, the rapid growth of the leading sector depends on the presence of four basic factors.
First, there must be an increase in the effective demand of their products.Second, a new production function along with an expansion of capacity must be introduced into these sectors.Third, there must be sufficient initial capital and investment profits for the take off in these leading sectors.Lastly, these leading sectors must introduce expansion of output in other sectors through technical transformation.
The take off period is supposed to be short, lasting for about two decades which is obvious from the history of the developed countries. The following are the conditions.
1: the first and essential condition for take off is a rise in the rate of productive investment from say five percent or less to over ten percent of national income. In other words the percentage rate of investment must be five or six times greater than the percentage increase in population.
2: The second condition for take off is the development of one or more leading sectors in the economy. According to Rostow, the rapid growth of the leading sector depends on the presence of four basic factors.
First, there must be an increase in the effective demand of their products.Second, a new production function along with an expansion of capacity must be introduced into these sectors.Third, there must be sufficient initial capital and investment profits for the take off in these leading sectors.Lastly, these leading sectors must introduce expansion of output in other sectors through technical transformation.