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This chapter reviews the main growth theories since Harrod's 1939 model. Solow emphasizes convergence in the income per capita of all countries and the 'catching up' by developing countries. In neoclassical models, economic growth 'trickles down' to all people and countries. Other authors emphasize different aspects of development. Lewis underlines the dualistic nature of developing economies while the structuralist approach stresses the importance of import substitution and export promotion. The dependency of periphery economies on the centre is underlined by dependency theorists, who focus on the role of social and economic structures and of the international division of labour. A final section analyses the emergence of the market efficiency hypothesis.","publication_date":"2018,,","publication_name":"Development","grobid_abstract_attachment_id":"85167654"},"document_type":"paper","pre_hit_view_count_baseline":null,"quality":"high","language":"en","title":"In the Beginning, There Was Economic Growth","broadcastable":true,"draft":null,"has_indexable_attachment":true,"indexable":true}}["work"]; window.loswp.workCoauthors = [30755249]; window.loswp.locale = "en"; window.loswp.countryCode = "SG"; window.loswp.cwvAbTestBucket = ""; window.loswp.designVariant = "ds_vanilla"; window.loswp.fullPageMobileSutdModalVariant = "full_page_mobile_sutd_modal"; window.loswp.useOptimizedScribd4genScript = false; window.loswp.appleClientId = 'edu.academia.applesignon';</script><script defer="" src="https://accounts.google.com/gsi/client"></script><div class="ds-loswp-container"><div class="ds-work-card--grid-container"><div class="ds-work-card--container js-loswp-work-card"><div class="ds-work-card--cover"><div class="ds-work-cover--wrapper"><div class="ds-work-cover--container"><button class="ds-work-cover--clickable js-swp-download-button" data-signup-modal="{"location":"swp-splash-paper-cover","attachmentId":85167654,"attachmentType":"pdf"}"><img alt="First page of “In the Beginning, There Was Economic Growth”" class="ds-work-cover--cover-thumbnail" src="https://0.academia-photos.com/attachment_thumbnails/85167654/mini_magick20220429-1058-6nblri.png?1651233632" /><img alt="PDF Icon" class="ds-work-cover--file-icon" src="//a.academia-assets.com/assets/single_work_splash/adobe.icon-574afd46eb6b03a77a153a647fb47e30546f9215c0ee6a25df597a779717f9ef.svg" /><div class="ds-work-cover--hover-container"><span class="material-symbols-outlined" style="font-size: 20px" translate="no">download</span><p>Download Free PDF</p></div><div class="ds-work-cover--ribbon-container">Download Free PDF</div><div class="ds-work-cover--ribbon-triangle"></div></button></div></div></div><div class="ds-work-card--work-information"><h1 class="ds-work-card--work-title">In the Beginning, There Was Economic Growth</h1><div class="ds-work-card--work-authors ds-work-card--detail"><a class="ds-work-card--author js-wsj-grid-card-author ds2-5-body-md ds2-5-body-link" data-author-id="30755249" href="https://unipv.academia.edu/VaggiGiovanni"><img alt="Profile image of Vaggi Giovanni" class="ds-work-card--author-avatar" src="https://0.academia-photos.com/30755249/28498063/26646921/s65_vaggi.giovanni.jpg" />Vaggi Giovanni</a></div><div class="ds-work-card--detail"><p class="ds-work-card--detail ds2-5-body-sm">2018, Development</p></div><div class="ds-work-card--button-container"><button class="ds2-5-button js-swp-download-button" data-signup-modal="{"location":"continue-reading-button--work-card","attachmentId":85167654,"attachmentType":"pdf","workUrl":"https://www.academia.edu/77951447/In_the_Beginning_There_Was_Economic_Growth"}">See full PDF</button><button class="ds2-5-button ds2-5-button--secondary js-swp-download-button" data-signup-modal="{"location":"download-pdf-button--work-card","attachmentId":85167654,"attachmentType":"pdf","workUrl":"https://www.academia.edu/77951447/In_the_Beginning_There_Was_Economic_Growth"}"><span class="material-symbols-outlined" style="font-size: 20px" translate="no">download</span>Download PDF</button></div></div></div></div><div data-auto_select="false" data-client_id="331998490334-rsn3chp12mbkiqhl6e7lu2q0mlbu0f1b" data-doc_id="85167654" data-landing_url="https://www.academia.edu/77951447/In_the_Beginning_There_Was_Economic_Growth" data-login_uri="https://www.academia.edu/registrations/google_one_tap" data-moment_callback="onGoogleOneTapEvent" id="g_id_onload"></div><div class="ds-top-related-works--grid-container"><div class="ds-related-content--container ds-top-related-works--container"><h2 class="ds-related-content--heading">Related papers</h2><div class="ds-related-work--container js-wsj-grid-card" data-collection-position="0" data-entity-id="9262208" data-sort-order="default"><a class="ds-related-work--title js-wsj-grid-card-title ds2-5-body-md ds2-5-body-link" href="https://www.academia.edu/9262208/The_Untenable_Development_in_the_theory_of_International_trade_Growth_as_the_engine_of_development_A_sceptical_assessment">The Untenable Development in the theory of International trade: Growth as the engine of development: A sceptical assessment</a><div class="ds-related-work--metadata"><a class="js-wsj-grid-card-author ds2-5-body-sm ds2-5-body-link" data-author-id="20342664" href="https://ufrj.academia.edu/AlexisSaludjian">Alexis Saludjian</a></div><p class="ds-related-work--abstract ds2-5-body-sm">Defining the concept of development is not an easy task and it would certainly go far beyond the scope of this text. Nevertheless, it is necessary to recall that originally, the concept of development had a political goal. President Truman presented this concept more than fifty years ago, in 1949. The basic idea was that «developing» Society or an economy was a historical task. Firstly, development from this point of view was mainly a strategy of the Occident to contain communism. Secondly, the process which took a century in the rich countries to occur could happen in the same way in a few decades in other less economically developed countries. The eventuality of «catching up» is closely related to this notion. Third, development is considered to be an endless process that could last forever no matter what happens. Last but not least, development is closely linked with the role of the state and its historical goal to succeed in developing the nation. Despite the historical and political reasons stated above, our paper focuses on the neo- classical approach to the development issue. According to this analysis, growth has been considered to be the ultimate goal of these so-called Under-Developed countries in order that they develop. The lucid analysis of J. Stiglitz is worth quoting: « During the past four decades, development has been considered (at least for the dominant approach) as a mere matter of economics: The point was to look for the increase in Stock exchange capitalisation (through foreign transfers or the increase in domestic Savings rate) and through a better allocation of resources2. These changes were supposed to lead to a rise in income and, (automatically) to a sustainable increase in the growth rate.» [Stiglitz, 2000a, p.9] The analysis of growth will therefore represent the core element of the neo-classical international trade theory3 and its role is determinant for under-developed countries to «develop» and catch up with the level of developed countries . We will focus on two different approaches to growth (both neo-classical). First, the exogenous growth model developed by Solow [1956 and 1957] which is one of the first to underline the importance of technological progress. Second, the endogenous growth models of Romer [1990] and Grossman and Helpman [1990 and 1991]. The aim is to expose these models and analyse their hypothesis and which are related to our main concern i.e. development of the under-developed countries. The study of these two model families will lead to the debate on convergence or divergence in growth rate per capita between developed and under-developed countries. The endogenous growth theory is, in this respect, worth studying as it implies policy programs concerning the technological progress to avoid divergence and to enable developing countries to increase their growth rate. The conclusion of this part will point out that, in the endogenous growth theory, the process of the incorporation of technological progress which is essential to increase the growth rate, has to rely on the innovation and the R&D progress of the developed countries in order to grow faster (and due to the central hypothesis of increasing returns, imperfect competition and the agglomeration process). 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We will be mostly concerned with the determinants of the wealth of nations and also the appropriate national policies to achieve sustained and stable growth. We will regard the economic machine being in motion towards its long run (steady state) equilibrium, in all its giant complexity with many interrelated markets and different agents, classes and institutions. Four sets of issues will be addressed: we will,</p><div class="ds-related-work--ctas"><button class="ds2-5-text-link ds2-5-text-link--inline js-swp-download-button" data-signup-modal="{"location":"wsj-grid-card-download-pdf-modal","work_title":"BILKENT UNIVERSITY Department of Economics Econ 453 Theories of Growth and Development I Fall 2001","attachmentId":62314503,"attachmentType":"pdf","work_url":"https://www.academia.edu/24934080/BILKENT_UNIVERSITY_Department_of_Economics_Econ_453_Theories_of_Growth_and_Development_I_Fall_2001","alternativeTracking":true}"><span class="material-symbols-outlined" style="font-size: 18px" translate="no">download</span><span class="ds2-5-text-link__content">Download free PDF</span></button><a class="ds2-5-text-link ds2-5-text-link--inline js-wsj-grid-card-view-pdf" href="https://www.academia.edu/24934080/BILKENT_UNIVERSITY_Department_of_Economics_Econ_453_Theories_of_Growth_and_Development_I_Fall_2001"><span class="ds2-5-text-link__content">View PDF</span><span class="material-symbols-outlined" style="font-size: 18px" translate="no">chevron_right</span></a></div></div><div class="ds-related-work--container js-wsj-grid-card" data-collection-position="3" data-entity-id="25821237" data-sort-order="default"><a class="ds-related-work--title js-wsj-grid-card-title ds2-5-body-md ds2-5-body-link" href="https://www.academia.edu/25821237/Theories_of_Economic_Development">Theories of Economic Development</a><div class="ds-related-work--metadata"><a class="js-wsj-grid-card-author ds2-5-body-sm ds2-5-body-link" data-author-id="49598466" href="https://independent.academia.edu/EricGebru">Eric Gebru</a></div><p class="ds-related-work--abstract ds2-5-body-sm">This chapter reviews some of the most prominent theories of economic development. These theories describe tools and strategies for making development goals achievable. The chapter starts with early views about the nature of economic prosperity. The chapter then reviews classical theories with four main clusters: linear stages of growth models; structural change models; international dependence models; and neoclassical counter-revolution models. Subsequently, contemporary theories of economic development, including new growth theory and theory of coordination failure, are reviewed. Finally, implications of the changes in the development thoughts and their importance in studying development problems in the developing countries conclude the chapter. The problems of economic development, which are complex and multidimensional, have resulted in the development of a number of theories, explanations, arguments and assertions (World Bank 2000). The purpose of this chapter is to review some of the most prominent theories of economic development. These theories describe tools and strategies for making development goals achievable. The chapter starts with early views about the nature of economic prosperity. The chapter then reviews classical theories with four main clusters: linear stages of growth models; structural change models; international dependence models; and neoclassical counter-revolution models. Subsequently, contemporary theories of economic development, including new growth theory and theory of coordination failure, are reviewed. Finally, implications of the changes in the development thoughts and their importance in studying development problems in the developing countries conclude the chapter.</p><div class="ds-related-work--ctas"><button class="ds2-5-text-link ds2-5-text-link--inline js-swp-download-button" data-signup-modal="{"location":"wsj-grid-card-download-pdf-modal","work_title":"Theories of Economic Development","attachmentId":46188369,"attachmentType":"pdf","work_url":"https://www.academia.edu/25821237/Theories_of_Economic_Development","alternativeTracking":true}"><span class="material-symbols-outlined" style="font-size: 18px" translate="no">download</span><span class="ds2-5-text-link__content">Download free PDF</span></button><a class="ds2-5-text-link ds2-5-text-link--inline js-wsj-grid-card-view-pdf" href="https://www.academia.edu/25821237/Theories_of_Economic_Development"><span class="ds2-5-text-link__content">View PDF</span><span class="material-symbols-outlined" style="font-size: 18px" translate="no">chevron_right</span></a></div></div><div class="ds-related-work--container js-wsj-grid-card" data-collection-position="4" data-entity-id="30171072" data-sort-order="default"><a class="ds-related-work--title js-wsj-grid-card-title ds2-5-body-md ds2-5-body-link" href="https://www.academia.edu/30171072/Critique_of_New_Growth_Theories_1_Can_New_Growth_Theories_be_a_Good_Substitute_of_Development_Economics_An_Approach_in_Terms_of_Developing_Countries">Critique of New Growth Theories 1 : Can New Growth Theories be a Good Substitute of Development Economics? An Approach in Terms of Developing Countries</a><div class="ds-related-work--metadata"><a class="js-wsj-grid-card-author ds2-5-body-sm ds2-5-body-link" data-author-id="29112232" href="https://bilkent.academia.edu/MineKara">Mine Kara</a></div><p class="ds-related-work--abstract ds2-5-body-sm">There is an important change in the economic growth literature since the 1980's. New growth theories are in ascendency. This shift also changed the scope in the development economics. Till late 1970's, development economics was built upon aggregate demand and policy oriented-Keynesian macroeconomic models. This paradigm shift in growth macroeconomics, replaced development economics with market and productivity oriented general equilibrium theories. In this article, this ''new development economics'' is questioned, whether it really is compatible with the needs of the developing countries and if it can form a functioning development economics.</p><div class="ds-related-work--ctas"><button class="ds2-5-text-link ds2-5-text-link--inline js-swp-download-button" data-signup-modal="{"location":"wsj-grid-card-download-pdf-modal","work_title":"Critique of New Growth Theories 1 : Can New Growth Theories be a Good Substitute of Development Economics? An Approach in Terms of Developing Countries","attachmentId":50628617,"attachmentType":"pdf","work_url":"https://www.academia.edu/30171072/Critique_of_New_Growth_Theories_1_Can_New_Growth_Theories_be_a_Good_Substitute_of_Development_Economics_An_Approach_in_Terms_of_Developing_Countries","alternativeTracking":true}"><span class="material-symbols-outlined" style="font-size: 18px" translate="no">download</span><span class="ds2-5-text-link__content">Download free PDF</span></button><a class="ds2-5-text-link ds2-5-text-link--inline js-wsj-grid-card-view-pdf" href="https://www.academia.edu/30171072/Critique_of_New_Growth_Theories_1_Can_New_Growth_Theories_be_a_Good_Substitute_of_Development_Economics_An_Approach_in_Terms_of_Developing_Countries"><span class="ds2-5-text-link__content">View PDF</span><span class="material-symbols-outlined" style="font-size: 18px" translate="no">chevron_right</span></a></div></div><div class="ds-related-work--container js-wsj-grid-card" data-collection-position="5" data-entity-id="61969197" data-sort-order="default"><a class="ds-related-work--title js-wsj-grid-card-title ds2-5-body-md ds2-5-body-link" href="https://www.academia.edu/61969197/New_Growth_Theory_and_Development_Economics">New Growth Theory and Development Economics</a><div class="ds-related-work--metadata"><a class="js-wsj-grid-card-author ds2-5-body-sm ds2-5-body-link" data-author-id="66159" href="https://pisa.academia.edu/NeriSalvadori">Neri Salvadori</a></div><div class="ds-related-work--ctas"><button class="ds2-5-text-link ds2-5-text-link--inline js-swp-download-button" data-signup-modal="{"location":"wsj-grid-card-download-pdf-modal","work_title":"New Growth Theory and Development Economics","attachmentId":74862912,"attachmentType":"pdf","work_url":"https://www.academia.edu/61969197/New_Growth_Theory_and_Development_Economics","alternativeTracking":true}"><span class="material-symbols-outlined" style="font-size: 18px" translate="no">download</span><span class="ds2-5-text-link__content">Download free PDF</span></button><a class="ds2-5-text-link ds2-5-text-link--inline js-wsj-grid-card-view-pdf" href="https://www.academia.edu/61969197/New_Growth_Theory_and_Development_Economics"><span class="ds2-5-text-link__content">View PDF</span><span class="material-symbols-outlined" style="font-size: 18px" translate="no">chevron_right</span></a></div></div><div class="ds-related-work--container js-wsj-grid-card" data-collection-position="6" data-entity-id="35250860" data-sort-order="default"><a class="ds-related-work--title js-wsj-grid-card-title ds2-5-body-md ds2-5-body-link" href="https://www.academia.edu/35250860/ON_THE_MECHANICS_OF_ECONOMIC_DEVELOPMENT">ON THE MECHANICS OF ECONOMIC DEVELOPMENT</a><div class="ds-related-work--metadata"><a class="js-wsj-grid-card-author ds2-5-body-sm ds2-5-body-link" data-author-id="71829885" href="https://independent.academia.edu/ErnaniJunior5">Ernani Junior</a></div><p class="ds-related-work--abstract ds2-5-body-sm">This paper considers the prospects for constructing a neoclassical theory of growth and international trade that is consistent with some of the main features of economic development. Three models are considered and compared to evidence: a model emphasizing physical capital accumulation and technological change, a model emphasizing human capital accumulation through schooling. and a model emphasizing specialized human capital accumulation through learning-by-doing.</p><div class="ds-related-work--ctas"><button class="ds2-5-text-link ds2-5-text-link--inline js-swp-download-button" data-signup-modal="{"location":"wsj-grid-card-download-pdf-modal","work_title":"ON THE MECHANICS OF ECONOMIC DEVELOPMENT","attachmentId":55110538,"attachmentType":"pdf","work_url":"https://www.academia.edu/35250860/ON_THE_MECHANICS_OF_ECONOMIC_DEVELOPMENT","alternativeTracking":true}"><span class="material-symbols-outlined" style="font-size: 18px" translate="no">download</span><span class="ds2-5-text-link__content">Download free PDF</span></button><a class="ds2-5-text-link ds2-5-text-link--inline js-wsj-grid-card-view-pdf" href="https://www.academia.edu/35250860/ON_THE_MECHANICS_OF_ECONOMIC_DEVELOPMENT"><span class="ds2-5-text-link__content">View PDF</span><span class="material-symbols-outlined" style="font-size: 18px" translate="no">chevron_right</span></a></div></div><div class="ds-related-work--container js-wsj-grid-card" data-collection-position="7" data-entity-id="109550637" data-sort-order="default"><a class="ds-related-work--title js-wsj-grid-card-title ds2-5-body-md ds2-5-body-link" href="https://www.academia.edu/109550637/Evolution_of_Economic_Development_Theories_and_Doctrines_since_World_War_II">Evolution of Economic Development Theories and Doctrines since World War II</a><div class="ds-related-work--metadata"><a class="js-wsj-grid-card-author ds2-5-body-sm ds2-5-body-link" data-author-id="65966677" href="https://independent.academia.edu/WilliamAscher">William Ascher</a></div><p class="ds-related-work--metadata ds2-5-body-xs">The Evolution of Development Thinking, 2016</p><div class="ds-related-work--ctas"><button class="ds2-5-text-link ds2-5-text-link--inline js-swp-download-button" data-signup-modal="{"location":"wsj-grid-card-download-pdf-modal","work_title":"Evolution of Economic Development Theories and Doctrines since World War II","attachmentId":107641940,"attachmentType":"pdf","work_url":"https://www.academia.edu/109550637/Evolution_of_Economic_Development_Theories_and_Doctrines_since_World_War_II","alternativeTracking":true}"><span class="material-symbols-outlined" style="font-size: 18px" translate="no">download</span><span class="ds2-5-text-link__content">Download free PDF</span></button><a class="ds2-5-text-link ds2-5-text-link--inline js-wsj-grid-card-view-pdf" href="https://www.academia.edu/109550637/Evolution_of_Economic_Development_Theories_and_Doctrines_since_World_War_II"><span class="ds2-5-text-link__content">View PDF</span><span class="material-symbols-outlined" style="font-size: 18px" translate="no">chevron_right</span></a></div></div><div class="ds-related-work--container js-wsj-grid-card" data-collection-position="8" data-entity-id="87874140" data-sort-order="default"><a class="ds-related-work--title js-wsj-grid-card-title ds2-5-body-md ds2-5-body-link" href="https://www.academia.edu/87874140/Economic_Development_a_Theoretical_Approach">Economic Development, a Theoretical Approach</a><div class="ds-related-work--metadata"><a class="js-wsj-grid-card-author ds2-5-body-sm ds2-5-body-link" data-author-id="222778778" href="https://independent.academia.edu/DIANALOUBAKI">DIANA LOUBAKI</a></div><p class="ds-related-work--metadata ds2-5-body-xs">2016</p><p class="ds-related-work--abstract ds2-5-body-sm">this article aim is to introduce to the economic development approach based on economic theory in order to rise the standard economic development pioneer analysis. Since both the growth and the development economics theories faced a methodological crisis between the 1970s and the 1990s which led growth theory regained interest with the model of Romer (1986), in contrast, development economics became empirical in developing countries study, thus too restrictive in the explanation of some phenomenon without data This article shows the way, long run growth through increasing returns can hold in developing countries for the least developed countries’ economic integration to be successful.</p><div class="ds-related-work--ctas"><button class="ds2-5-text-link ds2-5-text-link--inline js-swp-download-button" data-signup-modal="{"location":"wsj-grid-card-download-pdf-modal","work_title":"Economic Development, a Theoretical Approach","attachmentId":91975651,"attachmentType":"pdf","work_url":"https://www.academia.edu/87874140/Economic_Development_a_Theoretical_Approach","alternativeTracking":true}"><span class="material-symbols-outlined" style="font-size: 18px" translate="no">download</span><span class="ds2-5-text-link__content">Download free PDF</span></button><a class="ds2-5-text-link ds2-5-text-link--inline js-wsj-grid-card-view-pdf" href="https://www.academia.edu/87874140/Economic_Development_a_Theoretical_Approach"><span class="ds2-5-text-link__content">View PDF</span><span class="material-symbols-outlined" style="font-size: 18px" translate="no">chevron_right</span></a></div></div><div class="ds-related-work--container js-wsj-grid-card" data-collection-position="9" data-entity-id="110203992" data-sort-order="default"><a class="ds-related-work--title js-wsj-grid-card-title ds2-5-body-md ds2-5-body-link" href="https://www.academia.edu/110203992/The_validity_of_balanced_and_unbalanced_growth_theories_with_respect_to_the_process_of_economic_development">The validity of balanced and unbalanced growth theories with respect to the process of economic development</a><div class="ds-related-work--metadata"><a class="js-wsj-grid-card-author ds2-5-body-sm ds2-5-body-link" data-author-id="28369297" href="https://inceif.academia.edu/AbbasMirakhor">Abbas Mirakhor</a></div><p class="ds-related-work--metadata ds2-5-body-xs">1966</p><div class="ds-related-work--ctas"><button class="ds2-5-text-link ds2-5-text-link--inline js-swp-download-button" data-signup-modal="{"location":"wsj-grid-card-download-pdf-modal","work_title":"The validity of balanced and unbalanced growth theories with respect to the process of economic development","attachmentId":108093092,"attachmentType":"pdf","work_url":"https://www.academia.edu/110203992/The_validity_of_balanced_and_unbalanced_growth_theories_with_respect_to_the_process_of_economic_development","alternativeTracking":true}"><span class="material-symbols-outlined" style="font-size: 18px" translate="no">download</span><span class="ds2-5-text-link__content">Download free PDF</span></button><a class="ds2-5-text-link ds2-5-text-link--inline js-wsj-grid-card-view-pdf" href="https://www.academia.edu/110203992/The_validity_of_balanced_and_unbalanced_growth_theories_with_respect_to_the_process_of_economic_development"><span class="ds2-5-text-link__content">View PDF</span><span class="material-symbols-outlined" style="font-size: 18px" translate="no">chevron_right</span></a></div></div></div></div><div class="ds-sticky-ctas--wrapper js-loswp-sticky-ctas hidden"><div class="ds-sticky-ctas--grid-container"><div class="ds-sticky-ctas--container"><button class="ds2-5-button js-swp-download-button" data-signup-modal="{"location":"continue-reading-button--sticky-ctas","attachmentId":85167654,"attachmentType":"pdf","workUrl":null}">See full PDF</button><button class="ds2-5-button ds2-5-button--secondary js-swp-download-button" data-signup-modal="{"location":"download-pdf-button--sticky-ctas","attachmentId":85167654,"attachmentType":"pdf","workUrl":null}"><span class="material-symbols-outlined" style="font-size: 20px" translate="no">download</span>Download PDF</button></div></div></div><div class="ds-below-fold--grid-container"><div class="ds-work--container js-loswp-embedded-document"><div class="attachment_preview" data-attachment="Attachment_85167654" style="display: none"><div class="js-scribd-document-container"><div class="scribd--document-loading js-scribd-document-loader" style="display: block;"><img alt="Loading..." src="//a.academia-assets.com/images/loaders/paper-load.gif" /><p>Loading Preview</p></div></div><div style="text-align: center;"><div class="scribd--no-preview-alert js-preview-unavailable"><p>Sorry, preview is currently unavailable. 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