Abstract:

The theory of economic development had a long and confusing history extending from the classical economists of the 18th and 19th centuries through the German historical school at the beginning of the twentieth century (Schumpeter, 1912) to many streams different ideas of development that were put into circulation in the decades after the war. In the latter period, the analysis focused mainly on what were then termed the Third World Countries, and the question of sustainable development was largely questioned about the vicious circles of poverty and economic backwardness that seemed to be offer suboptimal performance to many regions in Africa, Asia and Latin America. Research on third world countries has shown that they have advanced in the 1970s and 1980s, development theorists have begun to recognize that at least some of these areas have been sensitive to significant industrialization and have appropriately added the notion of  „new industrialized countries” to include them in the theoretical repertoire. More recently, the issue of development has shifted in ways that reinforce the most advanced economies in its scope. This trend is particularly emphasized in the writings of new growth theorists, with emphasis on positive externalities as a major source of economic development and this is the path through which this research article carries on.