The new growth theory and development economics: A survey

Since their emergence as distinct fields of inquiry in the early post‐Second World War period there has been an uneasy relationship between growth economics and development economics. The emergence of a richer ‘new growth economics’ has opened up the possibilities of a more fruitful dialogue between the two subdisciplines. In spite of recent advances, particularly with respect to the human capital, an understanding of differences in growth rates and income levels across countries remains elusive. Further advances will require that growth economists broaden their research agenda to embrace a number of concepts that have become conventional in development economics.