Question

Write an overview of one of the discussed theories of development according to Fusfeld and Peet and Hartwick Chapters (other than neoliberalism). The suggested headings include: theory description, major contributors, theory applications, and criticisms. In addition to using Fusfeld and Peet and Hartwick as references, locate at least 2 peer-reviewed articles. List references at the end.

Answer 1

As per Peet and Harwick, the classical economic theory kf development is widely practised and assunes that economy is self regulated and has potential to achieve natural level of real GDP with full resources utilisation.

The markets here are based on laissez faire approach and efficiency of free markets lead to economic development.

The major contributors to these theories are Adma Smith and Ricardio who developed subsequent theories in line with above.

Applications of classical economic theory of development is India in modern times where government looks to cut income taxes to revive growth and natural level of real GDP however at same time does away with exemptions from investment so that net effect is marginalised and fiscal deficit doesn't gets breached which is how supply and demand factors get counter balanced.Hence, government intervention is minimised and is largely offset by monetarily policy regime by central banks which takes driver seat to revive economic growth and allows market to self regulate.

References :

Economic theories and world economy, 11th January 2019, by Danyal Suhail, AIDIA

Neoclassical economics and Indian Agriculture, An econometric analysis of production behaviour, by PN Junankar, Indian economic review, New Series, Vol. 17, No. 2/4, pp. 139-164.