MGEC81H3 Study Guide - Midterm Guide: Gross National Income, Economic Mobility, Capital Accumulation
27 May 2014
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Chapter 3: classical theories of economic growth & development. Classic post-world war ii literature on economic development has been dominated by four major and sometimes competing strands of thought: Theorists viewed the process of development as a series of successive (linear) stages of economic growth through which all countries must pass. Right quantity and mixture of saving, investment, and foreign aid were all that was necessary to enable growth: development synonymous with rapid, aggregate economic growth. Linear stages approach was replaced by two competing schools of thought: theories and patterns of structural change, international-dependence revolution. Neoclassical approach prevails: emphasized the beneficial role of free markets, open economies, and the privatization of inefficient public enterprises, failure to develop is a result of too much government intervention and regulation of the economy. Linear stages-of-growth model of development a theory of economic development according to which a country passes through sequential stages in achieving development.
