Theories and Models of Economic Growth and Development

The study of theories and models of economic growth and development is a foundational aspect of economics, offering crucial insights into how economies expand, evolve, and improve the living standards of their populations over time. This area of study examines the various factors that drive economic growth, including capital accumulation, technological innovation, labor force dynamics, institutional frameworks, and government policies. Understanding these theories is essential for analyzing the diverse experiences of countries and regions, particularly the disparities between developed and developing nations. By exploring different models—from classical theories of economic growth to modern approaches like endogenous growth theory—students and scholars can gain a comprehensive understanding of the complex processes that underpin economic development. This knowledge not only aids in formulating effective economic policies but also in addressing global challenges such as poverty, inequality, and sustainable development.

 

Classical Theories of Economic Growth

  1. Adam Smith’s Classical Growth Theory
  2. David Ricardo’s Comparative Advantage Model
  3. Thomas Malthus’ Population Growth Model

Neoclassical Growth Models

  1. Solow-Swan Growth Model
  2. Ramsey-Cass-Koopmans Model
  3. Endogenous Growth Theory
    • Romer’s Model of Technological Change
    • Lucas’ Human Capital Model

Keynesian and Post-Keynesian Growth Models

  1. Harrod-Domar Growth Model
  2. Kaldor’s Growth Model
  3. Pasinetti’s Growth Model

Structuralist Theories

  1. Lewis Model of Dual Sector Development
  2. Rosenstein-Rodan’s Big Push Theory
  3. Nurks’ Balanced Growth Theory

Modernization and Development Theories

  1. Rostow’s Stages of Economic Growth
  2. Kuznets’ Modern Economic Growth Theory
  3. Schumpeter’s Theory of Innovation and Economic Development

Dependency and World Systems Theories

  1. Frank’s Dependency Theory
  2. Wallerstein’s World Systems Theory

Dual Economy Models

  1. Fei-Ranis Model
  2. Harris-Todaro Model

New Growth Theories

  1. Learning by Doing Model
  2. Research and Development (R&D) Models
  3. AK Model (Endogenous Growth)

Environmental and Sustainable Growth Models

  1. Daly’s Steady-State Economy
  2. Green Growth Models
  3. Ecological Economics

Inclusive Growth Models

  1. Sen’s Capability Approach
  2. Human Development Index (HDI) Framework

Post-Keynesian and Other Heterodox Models

  1. Kalecki's Growth Model
  2. Goodwin’s Growth Cycle Model
  3. Marxist Growth Theory