Economic development

Economic development is the development of economic wealth of countries or regions for the well-being of their inhabitants. The study of economic development is known as development economics.

Overview

Development economics emerged as a branch of economics because conventional economic theories are largely applicable only to developed countries that have gone through development already and are embarking on steady-state growth. The most important objective of development economics is to apply and modify conventional economic theories to deal with the case of developing countries. The differences between developed and developing countries have to do with characteristics of developing countries which have imperfect markets, underemployment, and dualism. The primary characteristic of developing countries is their low per capita income. The purpose of learning a theory in development economics is to draw policy implications for development. It is important to make a distinction between growth and development.

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