The Process of Economic Development

By James M. Cypher; James L. Dietz | Go to book overview

8

Endogenous growth theories and new strategies for development
After studying this chapter, you should understand:
• the difference between "conditional" and "unconditional" income convergence;
• the basic structure of endogenous growth models and how they differ from both the classical and neoclassical growth theories;
• the importance of human capital, learning-by-doing and other positive externalities to sustaining economic growth;
• the significance of constant and increasing returns in the endogenous growth models;
• the effects of inequality of income and land distribution on the rate of economic growth;
• the importance of social infrastructure and other alterable initial endowments to the rate of economic growth;
• the significance of "technical efficiency change" and "total factor productivity" to economic growth; and
• the role that social institutions can play in contributing to or thwarting economic progress.

Introduction

Near the end of Chapter 4, the Solow neoclassical growth theory was introduced. It has been interpreted as predicting that the per capita incomes of economies will tend to converge to the same level over time as lower income nations grow faster than higher income nations, assuming they all have access to the same technology and share similar savings and investment rates. 1 Solow's theoretical structure lent credence to and validated the policy recommendations of many of the early developmentalist economists and their policy-oriented theories, like the "big push," "balanced growth" and "unbalanced growth" strategies considered in Chapter 5. You will remember that these were strategies that focused on the expansion of the industrial capital stock and the rate of savings as the means to promote economic growth and higher income per capita.

The primacy of physical capital accumulation, the K variable in the Solow-type aggregate production function, has continued to draw the attention of development economists. In this traditional view, to develop, countries need to save and invest so

-223-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
The Process of Economic Development
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
/ 539

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

    Already a member? Log in now.