Non-Economic Biases Towards Capital-Intensive Techniques in LDC's
The problem of employment in developing economies has been explained by one of the technological determinism or factor price distortion. This paper presents a third view: biases to capital-intensive techniques stemming from non-economic preferences by engineers, designers, managers, and policymakers. This paper emphasizes engineering biases based on the designers' maximization of technical efficiency, defined in a manner distinct from factor-efficiency. Policy implications are that direct action to change attitudinal biases and stimulate development of labour-intensive techniques is needed.
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