What are different theories of economic development?
Economic development theory is carried out in an effort to explain how the country's economy or region is created and beneficial, and these theories are often used to create laws and politicians. Social theory of economic development focuses on social issues to improve the economic state of the area. Neoclassical economic theory of economic development usually focuses on the free market with less government controls and restrictions that help businesses grow faster. Technology often plays a role in economic development, and on this aspect, exogenous growth theories are focused. With Harris-Todaro (HT), the addition of urban jobs can end up reducing overall jobs, especially in development areas. For example, these theories say that someone who receives education and has a family that does not experience poverty will best be able to broadcast the economy. By using these theories, the government can create laws or actions that improve these social problems in an effort to increase the economy. These theories tend to fungIt best in areas that are already developed and usually complement themselves in development areas.
In neoclassical theories of economic development, government inspections and restrictions, it serves only for the proper development of the economy. For example, if an enterprise is capable of growing naturally and not by the rate prescribed by the government, it will best help the economy. If the government agrees with these theories, they usually save light limitation on companies.
Theory of exogenous growth of economic development of the Center for Technological Advance for Increasing Economy. These technological advances can be as complex as a top computer system or simple as a weaving state. Improving technology and increasing new technologies for businesses improve the economy in the field of these theories.
When the government helps create new jobs, jobs are generally carried out in the city sector. Although it may seem reasonable, the view ht nAnd the economy says that the addition of jobs in rural areas is usually better. This is common to developing countries and regions that require strong rural positions. After the end of city jobs, people in the rural area move to the urban area, leading to minor agriculture and food production, which tends to weaken the area and economy.