Overview
Theories of economic development provide frameworks for understanding how economies grow and improve over time. They explore various factors, including technology, institutions, and historical contexts, that influence this growth. Key theories include Modernization Theory, which emphasizes stages of...
Key Terms
Example: Economic development can be seen in countries that have improved their GDP and living standards.
Example: According to Modernization Theory, countries move from traditional to modern societies.
Example: Dependency Theory explains why some countries remain poor despite having resources.
Example: Neoclassical Growth Theory suggests that increasing savings can lead to higher economic growth.
Example: Institutional Economics looks at how laws and regulations impact economic performance.
Example: A rising GDP indicates a growing economy.