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Interaction between theory and observation in development (English)

This review covers the empirical research carried out over the past 30 years with respect to the process of development. It examines the extent to which economic theories and generalizations derived from the experience of the developed countries are relevant to the developing countries. The relationship between the strutural transformation that occurs in the process of development and economic growth is explored. The neoclassical growth model is applied to both the more advanced countries, whose economic transformation is near completion, and to the developing countries still in the process of structural transformation. Further empirical work should reduce the controversy between neoclassical and structural approaches to development by making possible the formulation of computable models in which the distinction between developing and developed countries can be largely reduced to observable differences in certain statistical parameters: initial conditions, price and income elasticities, and adjustment lags.

Details

  • Author

    Chenery, Hollis B.

  • Document Date

    1983/01/01

  • Document Type

    Journal Article

  • Report Number

    REP288

  • Volume No

    1

  • Total Volume(s)

    1

  • Disclosure Date

    2010/07/01

  • Doc Name

    Interaction between theory and observation in development

  • Keywords

    comparative development;trade among developing countries;interest rate management;total factor productivity growth;marginal productivity of capital;world development;process of development;contribution of capital;rate of growth;point of departure;neoclassical growth model;terms of trade;trade adjustment;study of production;trade and employment;elasticity of substitution;aggregate production function;returns to capital;share of capital;estimation of production;Exchange rate policies;labor market discrimination;exchange rate policy;substitution in production;infant industry argument;social welfare function;comparative study;postwar period;advanced country;energy policies;factor inputs;regression equation;empirical study;international economics;total output;income elasticity;Trade Policy;export growth;labour input;research program;consumer behaviour;surplus labor;empirical work;Trade Policies;dual economy;urban economy;productivity change;general equilibrium;export expansion;price effect;aggregate growth;higher growth;conceptual basis;shadow price;Agricultural Trade;common feature;economics study;global view;neoclassical theory;principal factor;Population Growth;production relation;explanatory variable;factor return;demographic phenomenon;Demographic Transition;performance planning;neoclassical assumption;open economy;capital growth;price system;present value;cross-section study;international study;cultural change;capital input;social studies;social study;factor contributions;Economic Policy;macroeconomic theory;enterprise institute;wage determination;productive use;commercial policy;export performance;food prospect;oil exporter;outward orientation;consumer preference;Fiscal policies;regression analysis;International Trade;labor skills;aggregate capital;arbitrary nature;oil crisis;product market;built environment;equilibrium model;factor endowment;unskilled labour;Learning and Innovation Credit;wage differential;demand management;Political Economy;survey data;household welfare;trading group;trade pattern;traditional sector;consumer demand;demand function;neoclassical framework;empirical research;trade theory;test development;stable growth;self-help housing;country regression;external shock;productivity increase;fiscal policy;neoclassical model;competitive equilibrium;capital inflow;Capital Inflows;reallocation hypothesis;empirical findings;alternative specification;regression coefficient;Industrialized countries;cable address;advanced economy;aggregate analysis;empirical estimate;development study;

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Citation

Chenery, Hollis B.

Interaction between theory and observation in development (English). World Bank reprint series ; no. REP Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/223561468764693805/Interaction-between-theory-and-observation-in-development