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New general theory of economic development: Innovative growth and distribution

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  • Yong‐Shik Lee

Abstract

Economic development, which refers to the process of progressive transformation of an economy, is a multifaceted term without a universal definition. This article presents the constitutive elements of economic development: growth, distribution, and innovation. Economic development has been ubiquitous with the economic progress of “developing” countries, but the changing economic circumstances of “developed” countries, such as stagnant growth, regional economic disparity within developed countries, and deepening income gaps among citizens of developed countries, have made this term also relevant to address the economic problems of developed countries. The mechanisms of economic development, with respect to both developed and developing countries, are elusive, and the existing theories have not been able to explain these mechanisms of economic development adequately. This article reviews the existing theories and presents a new theoretical framework to explain the process of economic development.

Suggested Citation

  • Yong‐Shik Lee, 2020. "New general theory of economic development: Innovative growth and distribution," Review of Development Economics, Wiley Blackwell, vol. 24(2), pages 402-423, May.
    • Handle: RePEc:bla:rdevec:v:24:y:2020:i:2:p:402-423
    DOI: 10.1111/rode.12654
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    References listed on IDEAS

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    Cited by:

    1. Elisabete Nogueira & Sofia Gomes & João M. Lopes, 2022. "The Key to Sustainable Economic Development: A Triple Bottom Line Approach," Resources, MDPI, vol. 11(5), pages 1-18, May.

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