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Economies in Transition and Development Economics

In: The World Economy

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  • Marjan Senjur

Abstract

The theory of economic development deals mostly with problems of the least developed countries. The theory of economic growth, on the other hand, deals mostly with problems of developed countries. There is no good theory which would be appropriate for the problems of the middle developed countries, such as countries of South America, East Asia, Eastern Europe. These countries were given attention in the eighties when they faced the problem of high inflation, even hyperinflation, and high foreign indebtedness. The phenomenon of the newly industrialized countries was also treated in theory as a curiosity. These countries needed a combination of traditional development theory and growth theory. These new events caused a revival of “new” growth theory (Romer, 1994) and a revival of “new” development theory can be expected in the future.

Suggested Citation

  • Marjan Senjur, 1996. "Economies in Transition and Development Economics," Palgrave Macmillan Books, in: Marjan Svetličič & H. W. Singer (ed.), The World Economy, chapter 7, pages 119-134, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-24695-3_7
    DOI: 10.1007/978-1-349-24695-3_7
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