Classic growth and laggard growth: a new approach to development policies
The article argues that, unlike what happens in developed coutries, where growth depends on the levels of savings and technological innovations, in developing countries growth is subject to market availability. In terms of economic policy, this means that in developed countries the effort should be towards the creation of savings and technological innovations in appropriate level, while in developing countries the important is to ensure market dynamism and dimensions necessary for the elimination of their economic backwardness. Failure to recognize this difference, resulting from the development economics not proposing specific model for the laggard growth, has led to serious errors in development policies.
JEL Classification: O1.
Keywords: Classic growth, laggard growth, developmental policies