Compare and contrast Adam Smith’s theory of development with that of Ricardo’s

Adam Smith theory of development with that of Ricardo's  is considered to be the father of economics. It is not so because he was first explorer in the field of economics, also not because he revolutionized economic planning by his maiden ideas, but because he abbreviated what he had received from his predecessors and handed it down as a guide to the coming generations.

He was the editor and not the author, organizer and not the originator of economic science.

“He was the man of systematic work and balanced presentation, not of great new ideas but a man who carefully investigates the given data, criticizes them cooly and sensibly, and coordinates the judgements arrived at with others which have already been established”.

Hirofumi Uzawa's two-sector growth model considers a Solow-Swan type of growth model with two produced commodities, a consumer good and an investment good. Both these goods are produced with capital and labour.

So we have two outputs and two inputs, of which the most interesting feature is that one of the outputs is also an input. To use the old Hicksian analogy, in the Uzawa two-sector model, we are using, labour and tractors to make corn and tractors. For the following exposition, we have benefited particularly from Burmeister and Dobell and Siglitz and Uzawa.

Now, we assume no barriers competition in the factor markets, so that there is free movement of labour and capital across sectors. This implies that the wage rate w and the profit rate r must be the same in both the consumer goods and investment goods industry.

Grigory Alexandrovich Feldman, an electrical engineer by profession, worked in Gosplan from 1923 until 1931. His report to the committee for long-term planning of Gosplan, entitled "On the Theory of the Rates of Growth of the National Income," was published in 1928 and became the basis for the committee's preliminary draft of a long-term plan.

Feldman's two-sector growth model was based on the macroeconomic concepts of Karl Marx. Feldman first demonstrated that the higher the aggregate growth of an economy, the more capital had to be devoted _____ _______ _____ __________ _____ ________ _____ _____ _______ ________ __________.
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