Economic Growth and Development 2

This book is intended to be complementary to the volume entitled Economic Growth and Development published in 2015. In the first chapter, Francesco Macheda contributes a thorough analysis of historical developments. In the following chapters, Hasan Grak is reporting on rather important global issues regarding long-run growth and the progress of developing countries, such as the Brain Drain, Types of Capital, The Legend of Savings equals Investment and the Middle-Income Trap. Qualified brains or synonymously qualified labor is a sine qua non for economic growth and development. But the developing countries seem to lose their most valuable inputs of production to the developed countries in return for nothing. Capital is one of the essential factors of economic growth and development. Yet there is no consensus on the definition of capital. In fact, there are various types of capital which are simply ignored in the economic textbooks. The savings equal investment (S = I) approach is still used in contemporary textbooks emphasizing its relationship to growth. The author evaluates how realistic this perception is. According to an argument there might be an end to growth for some Middle-Income Countries that are caught in a trap. Grak claims that there is no deliberately engineered trap.