1. For an elaboration and illustration of the principle see C. Northcote Parkinson: Parkinson’s Law: or the pursuit of progress, London 1957, reprinted 1960.
2. See for example, John H. Adler: Absorptive Capacity: The Concept and its Determinants, The Brookings Institution, Washington, D.C., June 1965; Joel Dean: Measuring the Productivity of Capital, in: Harvard Business Review, Jan./Feb. 1954; H. S. Ellis, M. Wallich (eds.): Economic Development for Latin America, St. Martin’s Press, 1961; H. Chenery, A. Strout: Foreign Assistance and Economic Development, in: American Economic Review, Vol. 56, No. 4, 1966; and J. Bhagwati and R. S. Eckaus (eds.): Foreign Aid, Penguin Modern Readings, 1970.
3. J. M. Keynes: The General Theory of Employment, Interest and Money, New York 1936, p. 135.
4. For a sample of the voluminous literature on this topic see Keith B. Griffin: Foreign Capital, Domestic Savings and Economic Development, Oxford University, Institute of Economics and Statistics 32, May 1970; Thomas Weisskopf: The Impact of Foreign Capital on Domestic Savings in Underdeveloped Countries, in: Journal of International Economics, Vol. 2, No. 1, Feb. 1972; Gustav F. Papanek: Aid, Foreign Investments, Savings and Growth in Less Developed Countries, in: Journal of Political Economy, Vol. 81, No. 1, Jan./Feb. 1973; and P. T. Bauer: Dissent on Development, London 1971.
5. In a fuller discussion of motives see my article “Two Concepts of Foreign Aid” in: World Development, Vol. 1, No. 9, September 1973.