Management Notes

Reference Notes for Management

Characteristics of Developing Economies – 6 Common Characteristics | Development Economics

Characteristics of Developing Economies

Concept of Developing Economies

Both traditional economics and political economy are enriched by development economies. Development economics, although necessary to address efficient resource allocation and steady growth of aggregate output over time, is mainly concerned with the economic, social, and institutional mechanisms necessary to improve the living standards of the masses of poor in developing countries rapidly and significantly. Therefore, development economics needs to be concerned with the formulation of public policies that will facilitate major economic, institutional, and social transformations in a short amount of time. As a result, the gap between aspiration and reality will continue to widen. For this reason, in development economics the public sector plays a much greater and more influential role than in neoclassical economics.

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