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    The Relationship between Inequality and Economic Growth

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    Co-Working Spaces – A new agenda for place based economic development policies

    Email or Customer ID. They are also at different stages in the development of market and financial institutions and of an effective administrative framework. These differences are sufficient to warn against wide-sweeping generalizations about the causes of underdevelopment and all-embracing theoretical models of economic development. But when development economics first came into prominence in the s, there were powerful intellectual and political forces propelling the subject toward such general theoretical models of development and underdevelopment. First, many writers who popularized the subject were frankly motivated by a desire to persuade the developed countries to give more economic aid to the underdeveloped countries, on grounds ranging from humanitarian considerations to considerations of cold-war strategy.

    These countries were eager to accept general theories of economic development that provided a rationalization for their deep-seated desire for rapid industrialization. These new theories have continued to have a considerable influence on the conventional wisdom in development economics, although in retrospect most of them have turned out to be partial theories.

    Difference between Economic Growth and Economic Development

    A broad survey of these theories, under three main heads, is given below. It is particularly relevant to the debate over whether the underdeveloped countries should seek economic development through domestic industrialization or through international trade. The limitations of these new theories—and how they led to a gradual revival of a more pragmatic approach todevelopment problems, which falls back increasingly on the older economic theory of efficient allocation of resources—are subsequently traced.

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    An Introduction to Place-Based Development Economics and Policy

    Table Of Contents. Submit Feedback. Thank you for your feedback. Introduction Economic development as an objective of policy Motives for development The impact of discontent A survey of development theories The hypothesis of underdevelopment Development thought after World War II Growth economics and development economics The missing-component approach Shortage of savings Foreign-exchange shortage Education and human capital in development Surplus resources and disguised unemployment Role of governments and markets Lessons from development experience The importance of agriculture The role of exports The negative effect of controls The importance of appropriate incentives The role of the international economy Population growth Development of domestic industry Developing countries and debt Development in a broader perspective.

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    Read More on This Topic. Development economics is easy to characterize as one of the three major subfields of economics, along with microeconomics and macroeconomics. Load Next Page.

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