Modern Economic Development

The illustrations in this book are created by "Team Educohack".

"Modern Economic Development: A Beginner's Guide" offers an accessible introduction to growth theory, providing a framework for examining fundamental economic development issues. We discuss how developing countries transition from traditional rural production to modern urban production, a key driver of early economic growth.

Our book explores the Solow model, covering endogenous theories of saving, fertility, human capital, institutional arrangements, and policy formation, culminating in a dynamic dual economy approach. We use various microeconomic foundations and build on previous material to ensure a continuous learning flow. The book is designed for beginning graduate students and policymakers, focusing on data and policy analysis.

We emphasize the importance of understanding natural economic development laws and the state's role in coordinating the macro-consumption chain. We discuss structural transformation, technological innovation, and industrial upgrading, highlighting their impact on labor productivity, infrastructure, and transaction costs. Our book also addresses industrial policy for middle-income countries, categorizing industries based on their proximity to the global technology frontier.