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absorptive capacity (E2)<br />1 The physical limit to the amount of investment because PRODUCTIVITY declines as the rate of investment increases.<br /> 2 The extent to which a country can increase investment without depressing returns to that investment.<br /><em>Reference</em><br />Adler, J. (1965) Absorptive Capacity: the Concept and its Determinants, Washington, DC: Brookings Institution.
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