Economic Development Theories

Economic development theories explore how countries grow and improve the living standards of their people. Classical theories, like Adam Smith’s, highlight free markets and trade as drivers of growth. Modern theories consider factors like technology, education, and investing in human capital to boost productivity. Some focus on structural changes, like shifting from agriculture to industry, while others emphasize the role of government policies and institutions. Overall, these theories aim to understand the complex ways economies evolve and how best to promote sustainable progress for communities.