Development Economics

Development economics is a branch of economics which deals with economic aspects of the development process in less developed countries (LDCs). Its focus is not only on methods of promoting economic growth but also on improving the general well-being of common people through health, education, workplace conditions, and other aspects of human development. Development economics involves the creation of theories and methods that aid in the determination of policies and practices for economic and social security of the population at large. The study of development economics raises awareness regarding economic policies and practices being followed in a country. This book explains various aspects of development economics. It would help teachers and students of the subject to understand the basic concepts, components and processes of development economics. The book contains 30 chapters which have been organized into 2 parts. Part I (chapters 1 to 15) is titled Underdeveloped Countries and Growth Models. It explains and examines the following models of economic growth propounded by economists from time to time: W.W. Rostow’s stages of economic growth, economic growth model of Robert Solow, Harrod-Domar growth model, big push model of Paul Rosenstein-Rodan, critical minimum effort theory of Harvey Leibenstein, Ragnar Nurkse’s balanced growth theory, Albert Hirschman’s theory of unbalanced growth, and Simon Kuznets inverted U hypothesis. Other topics included in this part, among others, are location of industry, infrastructure and logistics, agriculture and economic development, and public goods and the problem of free-riding. Part II (chapters 16 to 30) is titled Aspects and Approaches to Economic Development. It includes, among others, the following topics: Demographic transition theory and demographic dividend hypothesis, Harris-Todaro model of rural-urban migration, dualism and economic development, entrepreneurship and start-ups, financial inclusion and financial......