What Are the Different Theories of Economic Development?

Economic development theory is a theory that studies the evolution of a country's economic and social structure modernization based on economic growth. Economic development theory takes the economic development of developing countries as the research object, and the economic development of developing countries has been the focus of attention and discussion of world economists since World War II.

Economic development theory

(Economic theory)

Before the 1950s and 1960s, traditional theories held that economic development meant an increase in national wealth and labor production, as well as an increase in per capita GDP. After the 1960s, this view was challenged by several national realities. In some countries, per capita GDP has grown rapidly, but their social, political, and economic structures have not improved commensurately. Poverty and unfair income distribution remain serious. Therefore, economists distinguish economic development from economic growth. The former has a richer connotation, involving not only material growth, but also the evolution of social, economic systems, and culture. Both the economic expansion of the economic scale and the improvement of the efficiency of economic activities have been emphasized. It is also a long-term, dynamic evolution.

1958 American Economist

Although development economics was formed in the 1940s and 1950s, the thoughts on economic development have a long history in economic history, which can be traced back to the era of classical economics, or even earlier. These budding ideas have had a great impact on the formation of contemporary economic development theories. Among the representative figures and works are:

Structuralist School Development Theory

The structuralist school is a precursor to studying the economic problems of developing countries. With the help of the experience of developed countries and some ready-made principles of western economics, they put forward several ideas for the economic development of developing countries. This school particularly emphasizes capital accumulation, industrialization, and planning. Representative theories are mainly

After the 1980s, modern economic development theory has entered a new period of development. Many new theories and models have emerged in succession, including new economic growth theory, new institutionalism, rent-seeking theory, and sustainable development theory. These theories Obviously different from previous economic development theories, because in this period, development economics showed a trend of integration, including the integration of development economics with mainstream economics, sociology, political science, law, ethics and other disciplines and economics Integration among schools of development theory. Of course, fusion is not a complete convergence, and new perspectives must be generated in the fusion, while the ever-dispelling academic faction dispute is the driving force for the development of economics.