logo image

Economic development Essay

This theory basically believes that industrialization is the key to the economy’s prosperity and progress. Moreover, according to this theory, industrialization can be achieved by increasing capital as much as possible together with the community. This is their way of developing one’s economy and motherland. The Harrow-Dammar model is also a major part of this theory. It talks about the rate of growth of a nation in a mathematical manner. It is actually based on the savings and income of the state.

Unfortunately, this theory does not work in some instances because it is not a sufficient condition and it focuses too much on investing in capital. On the other, the structural change theory mainly focuses on the process wherein actions develop their economy by drastically urbanize and modernizing their manufacturing and service sector. A great example of this kind of transformation is the Lewis Theory of Development. It explains that underdeveloped nations are divided into two namely, traditional and modern sectors.

Traditional sectors usually have zero marginal labor productivity while modern sectors are the opposite, which have high-level productivity. This theory generally focuses on the method where labor is shifted and the continuous progress of production and employment in the modern

Need essay sample on "Economic development Essay"? We will write a custom essay sample specifically for you for only $ 13.90/page

sector. Basically, this theory revolves around how an economy can avail and take advantage of a self-sustaining progression. Elimination of reliance on export goods and other economies are keys to success.

However, this may be quite hard for third world countries which continue to rely on trade with first world countries. The dependence theory is a branch of the structuralism mindset stated above. They both have the same concepts however the dependency theory states that third world nations are a great factor in the progression of the first world nations. Without their cheap labor and services, first world countries would spend more and would to be able to avail this kind of luxury.

Sadly, first world countries try to maintain this kind of situation to sustain power and avoid the rise of developing nations. Another theory stated was the neoclassical counter-revolution theory wherein prosperous economies devoted supply-touched policies and appropriation to public entities and wherein developing economies favored free trade and removal of public entities. This theory comprises three approaches namely, the free market approach, the public choice approach and the market friendly approach. Free market analysis pushes that markets are independently efficient.

The public choice theory believes that the government acts only for them and not for the actual improvement of the nation. Lastly, the market friendly approach states that the government is a key role to the success of the markets in the country. The neoclassical growth model was somehow patterned to the Harrow-Dammar formulation with the addition of labor to the equation. It also added technology as independent variable in calculating one’s growth. According to this model, increase in labor and capital and improvements in technology are the sources of growth of the economy.

Can’t wait to take that assignment burden offyour shoulders?

Let us know what it is and we will show you how it can be done!
×
Sorry, but copying text is forbidden on this website. If you need this or any other sample, please register

Already on Businessays? Login here

No, thanks. I prefer suffering on my own
Sorry, but copying text is forbidden on this website. If you need this or any other sample register now and get a free access to all papers, carefully proofread and edited by our experts.
Sign in / Sign up
No, thanks. I prefer suffering on my own
Not quite the topic you need?
We would be happy to write it
Join and witness the magic
Service Open At All Times
|
Complete Buyer Protection
|
Plagiarism-Free Writing

Emily from Businessays

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out https://goo.gl/chNgQy

We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy