What is Development economics?

Question

What are the key indicators of development? How are development and population growth related? What are the important factors that determine economic development? How does foreign aid impact development?

Answer 1

development economics
Development economics is a branch of economics that deals with the study of macroeconomic causes of long term economic growth, and microeconomics; the incentive issues of individual households and firms, especially in developing countries. This may involve using mathematical methods from dynamical systems like differential equations and inter-temporal optimization, or it may involve a mixture of quantitative and qualitative methods. Unlike classical economics, development economics incorporates social and political strategies to devise particular plans for development in third world countries. In this way, development economics does not rely simply on classical economic theory.


Topics of Research
Development economics also includes topics such as Third World debt, and the functions of such organisations as the International Monetary Fund and World Bank. Many economists in this field are interested in ways of promoting stable and sustainable growth in poor countries and areas, by promoting self reliance and education in some of the lowest income countries in the world. Where economic issues merge with social and political ones, it is referred to as development studies.


Criticisms
Per capita Gross Domestic Product (GDP per head) is used by many developmental economists as an approximation of general national well-being. However, these measures are criticized as not measuring economic growth well enough, especially in countries where there is much economic activity that is not part of measured financial transactions (such as housekeeping and self-homebuilding), or where funding is not available for accurate measurements to be made publicly available for other economists to use in their studies (including private and institutional fraud, in some countries). Even though per-capita GDP as measured can make economic well-being appear smaller than it really is in some developing countries, the discrepancy could be still bigger in a developed country where people may perform outside of financial transactions an even higher-value service than housekeeping or homebuilding as gifts or in their own households, such as counseling, lifestyle coaching, a more valuable home decór service, and time management. Even free choice can be considered to add value to lifestyles without necessarily increasing the financial transaction amounts. More recent theories of Human Development have begun to see beyond purely financial measures of development, for example with measures such as medical care available, education, equality, and political freedom. One measure used is the Genuine Progress Indicator, which relates strongly to theories of distributive justice. Actual knowledge about what creates growth is largely unproven; however recent advances in econometrics and more accurate measurements in many countries is creating new knowledge by compensating for the effects of variables to determine probable causes out of merely correlational statistics.


Recent developments
The most prominent contemporary development economist is perhaps the Nobel laureate Amartya Sen. Recent theories revolve around questions about what variables or inputs correlate or effect economic growth the most: elementary, secondary, or higher education, government policy stability, lack of trade barriers, fair court systems, available infrastructure, availability of medical care, prenatal care and clean water, ease of entry and exit into trade, and equality of income distribution (for example, as indicated by the Gini coefficient), and how to advise governments about macroeconomic policies, which include all policies that effect the economy.


Further reading
Jomo K.S. (2005), Pioneers of Development Economics: Great Economists on Development, Zed Books - the contributions of economists such as Marshall and Keynes, not normally considered development economists
Gerald M. Meier (2005), Biography of a Subject: An Evolution of Development Economics, Oxford University Press
Gerald M. Meier, Dudley Seers[editors] (1984), Pioneers in Development, World Bank ([1])
Jeffrey D. Sachs (2005), "The End of Poverty: Economic Possibilities for Our Time", Penguin Books
Ben Fine and Jomo K.S. (eds, 2005), The New Development Economics: Post Washington Consensus Neoliberal Thinking, Zed Books
Peter Griffiths (2003), The Economist's Tale: A Consultant Encounters Hunger and the World Bank, Zed Books
World Institute for Development Economics Research Publications/Discussion Papers
The Center for Global Development

Answer 2

Ok so you just copied and pasted.

Development economics has to do with how to make under developed countries grow into developed countries.

You see we still don't know which factors of production are responsible for making counties grow, so development economics deals with this topic head on. It uses everything we know about economics and tries to come up with a theory or a defined plan to turn an under-developed country into a developed country.

Answer 3

"the reason of attending to entice close economics is to no longer assemble a range of sensible-made recommendations to economic questions, yet to benefit the excellent thanks to stay away from being deceived by using using economists." Joan Robinson, Contributions to extremely-present day Economics, 1978, financial ruin 7, Marx, Marshall and Keynes, p. seventy 5