1. See Harrod (1939) and Domar (1946).
2. For a critical review of the Harrod-Domar model, see Frenkel and Hemmer (1999), pp. 9–25.
3. See Gylfason (1998), p. 42.
4. Easterly (1999), p. 2 expands that Domars intention was to discuss short-term recessions and investment in the United States and not to model long-run economic growth. Empirical studies that have examined the link between private investment and growth usually confirm that there is a positive relationship. For public investment, the results vary. On an aggregate level, the evidence on the impact of investment is mixed. At least, the predictions made by Lewis (1954, 1976, 1978), Rostow (1960) and other development economists in the 1950s, 1960s and 1970s that a higher investment ratio will lead to higher growth have not been fulfilled. Moreover, the composition of public investment matters more than the quantity of public investment itself. See Devarajan et al. (2002), p. 11. Their cross-country study on the relationship between public investment, private investment and growth by shows no positive correlation for a sample of African countries.
5. See Gillis et al. (1983), p. 122.