Though Harrod’s model of growth is similar to that of Domar, but it differs from the latter in details. Therefore we will explain below the essential features of Harrod’s growth theory separately. In his essay “Towards a Dynamic Economics “, Harrod put forward a theory which can be considered as truly dynamic. Explanation of secular trends is his main theme. He seeks to explain the secular causes of unemployment and inflation and the factors which determine the equilibrium and the actual rate of capital accumulation.