The state and the market, their functions and failures in the history of economic development thought

Managerial Finance - Tập 25 Số 3/4 - Trang 19-37 - 1999
HamidHosseini1
1Professor of Economics, John Davis Distinguished Professor of Business, King’s College, Wilkes‐Barre, Pa, and Affiliate in Research, Harvard University

Tóm tắt

Outlines the ideas incorporated in “development economics” and criticizes the lack of distinction made by some writers between development and economic growth. Asks whether underdeveloped countries really need a different economic theory from Western Europe and suggests that growth (in gross national product) and development (i.e. structural change) are actually complementary processes. Reviews various theories on the causes of underdevelopment (e.g. market failure, government failure) and strategies to cure it (e.g. government intervention, private initiative, market mechanism); and cites some examples of successful positive intervention.

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