Development Economics

Development economics is the study of transforming and improving the infrastructure of economies in low-income countries. The goal of developmental economics is not to apply traditional economics theories to these countries in broad strokes, but rather to focus on context-specific structural issues to address economic problems. Because it relies on the intersection of delicate systems such as economy, government, and socioeconomic groups, development economics incorporates many different fields of research in order to solve complex issues within a developing country. It is a sub-section of economics that engages with some of the most impactful and topical challenges in economics today.

Foreign Aid

Foreign aid is defined as the voluntary transfer of resources from one country to another country. This transfer includes any flow of capital to developing countries. A developing country usually does not have a robust industrial base and is characterized by a low Human Development Index (HDI).

The Easterlin Paradox

The Easterlin Paradox was theorized by Professor Richard Easterlin, who is an Economics Professor at the University of Southern California. In his paper titled, “Does Economic Growth Improve the Human Lot? Some Empirical Evidence”, he concluded that a country’s level of economic development and level of happiness are not connected.