Classic Theories of Development, A Review of Literature

OKEOWO Idowu Adeniyi

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Volume 1 | Issue 1 | Year 2024 | Article Id: CE-V1I1P104

Classic Theories of Development, A Review of Literature

OKEOWO Idowu Adeniyi

Received	Revised	Accepted	Published
25 Aug 2024	30 Sep 2024	17 Oct 2024	02 Nov 2024

Citation

OKEOWO Idowu Adeniyi. “Classic Theories of Development, A Review of Literature.” DS Reviews of Commerce and Economics, vol. 1, no. 1, pp. 44-49, 2024.

Abstract

The perpetual underdevelopment experience in developing nations calls for constant research to reverse the trend. The paper extensively analyses the classic theory of development with major emphasis on the Linear stages of growth, Structural change, International-dependence revolution, and Neoclassical counterrevolution theories. The research uses time series data from 1987 to 2023 for the Nigerian economy. A test of the classic theory of development was conducted using Autoregressive Distributed Lag (ARDL) models in its methodology. Although the variables are co-integrated, the short-run dynamic result shows that Agricultural Output (AGRI), Industrial Output (IND), and Services (SERV) need to change at a very high rate to bring a unit change in output, indicating that they are not major drivers of economic development. The findings revealed that developing countries must adopt the model that best suits their economic and socio-political atmosphere rather than dogmatically applying economic development theories that work best in developed nations. It was recommended that each state should establish four firms per year, while the local government should be merged into groups of five to establish one firm per year as an industrial revolution strategy. The federal government is to establish one firm in each geopolitical zone, making a total of six firms established by the federal government.

Keywords

Economic development, Models, Classic, International-dependence, Structural-change.

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