Production is a phrase that many academics use to refer to manufacturing. According to Sloman (2016), there are three economic sectors. The primary sector, which is the first of the three, entails the exploitation of raw resources. The secondary stage, often known as the manufacturing sector, is responsible for generating finished goods. The service sector, on the other hand, is in charge of delivering intangible goods. China and Brazil’s manufacturing sectors are still among the top ones in the world.
Mamic (2014) asserts that Shenzhen, a district in China, would strengthen the manufacturing industry to become the leading sector by 2020 in support of this claim. In order for a country to develop and thrive, savings and investment are key components of the Harrod-Domar growth model.
Additionally, Prabagar (2016) comes to the conclusion that the model is not a good one for nations to employ; because excessive saving would have an adverse effect on the infrastructural development of many sectors, particularly the industrial sector.
The underfunding of research and development necessary to increase capital output was a significant criticism of the Harrod-Domar plan.