Avoiding Malthusian trap

• Improvement of agricultural productivity without immediate population increase

• With higher agricultural productivity, workers could be transferred to industrial production

• Investment in agricultural machinery (e. g. better ploughs) further increased agricultural productivity

• Agriculture became more capital-intensive

• -> even with fixed supply of land it is possible to exchange capital for „land“ (e. g. fertilizers)

• Increases of A and K thus exceed increases in L

Notes: