Development Economics - An Introduction

What is Development Economics?

Development economics, a special part of economics, is made for discussing the economical development processes in the low-income oriented countries. Along with focussing on the economical development, growth of the economy and structure modification, it deals with the development the prospective of the common person.

The interesting fact with this special type of economics is that, it involves such fresh concepts or methods that can easily fit well with the international or domestic market condition. This also combines the quantitative as well as qualitative for a building a better economical background for the low-income range countries.

Theories of development economics

The theories of development economics are, Marcantilism, Economic Nationalism, linear stages of Growth model, Post WWII theories, Structural Change theory, International Dependence theory, Neoclassical Theory. The specialty of each theory under the wing of Development Economics is mentioned below.

Mercantilism-This can be described the foremost theory in the Western base Development economics. This theory was developed during 17th century. As this theory was framed in the period of nation state concept, so it focuses on the nation’s prosperity in the materialistic format, supply of capital, trade balance instead of concentrating on the ‘development ‘ feature.

Economic nationalism

This theory can be mentioned as the close theory of Mercantilism. This theory was first developed during the 19th century. This theory focuses on the domestic production.

Post WWII theories

This theory of the emergency period has concentrated on both the the structural and economic growth of the countries. As both the World Wars have almost cracked down the financial backbone of the western and eastern economics, therefore, to bring a new life to the economics, experts have joined to improve the low-income oriented countries for a better future.

Liner stages of growth models

This particular theory of economics generally focuses on the enhancing investment through accumulating the savings. This concept of economic theory generally shuffled in five stages. In each stage, the process of utilising funds of the international as well as the domestic has discussed.

Structural-change theory

Economics experts believe that there is no meaning that always a particular theory will work for various countries. There may be different situation may arise in different country, that may demand the right framing of the economics structure or to change the economics structucture of the country for betterment.

Neoclassical theory

This is considered as the most interesting and market friendly theory in Economics. This theory represents the importance of public choice for a betterment of market.

International dependency theory

In the year 1970, when the earlier theories are failed to gain the success in the market, then this theory was developed for the developing countries across the world. There are three different segments are available with this theory, and they arena-colonial dependence theory, the false paradigm model and the dualistic dependence model.

Conclusion

There are various theory have formed by the economists to bring a change in the financial backdrop of the low-income countries. Every time experts have gained, new ideas and these ideas have opened up new dawning lines in the field of economics.

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